The list price is under threat. Once an indispensable benchmark that expressed a company’s confidence in a product’s value, the list price now risks becoming overemphasized or, at the other extreme, obsolete. Widespread, easy access to price and product information subjects the list price to intense scrutiny by customers, suppliers, and channel partners alike. How can a single number withstand this onslaught and remain persuasive?
To declare the list price extinct amidst this disruption is reactionary. But to cling to the list price as a primary source of price communication is shortsighted. The management imperative is to evolve the role of the list price. At the same time, management must optimize its price communication. This requires supplementing the list price with other powerful communication approaches—many of which did not exist in the preinternet days when the list price reigned supreme.