--- title: Thinking vs. Reacting in Pricing description: Thinking vs. Reacting in Pricing --- [![Holden Advisors](https://blog.holdenadvisors.com/hubfs/Holdenadvisors_November2018%20Theme/Images/logo.jpg)](https://www.holdenadvisors.com/) - About - [Overview](https://www.holdenadvisors.com/about/overview/) - [Core Values](https://www.holdenadvisors.com/about/core-values/) - [Leadership](https://www.holdenadvisors.com/about/leadership/) - [Partners](https://www.holdenadvisors.com/about/partners/) - [Careers](https://www.holdenadvisors.com/about/careers/) - [Solutions](https://www.holdenadvisors.com/about/overview/#) - [Sales](https://www.holdenadvisors.com/about/overview/#) - [Overview](https://go.holdenadvisors.com/solutions/sales/improve-sales-performance) - [Negotiating With Backbone](https://www.holdenadvisors.com/solutions/sales/negotiating-with-backbone/) - [Selling With Backbone](https://www.holdenadvisors.com/solutions/sales/selling-with-backbone/) - [Coaching](https://www.holdenadvisors.com/solutions/sales/coaching/) - [Pricing](https://www.holdenadvisors.com/about/overview/#) - [Overview](https://go.holdenadvisors.com/solutions/improve-pricing-performance) - [Audit](https://www.holdenadvisors.com/solutions/pricing/audit/) - [Analytics](https://www.holdenadvisors.com/solutions/pricing/analytics/) - [Value-Based Pricing](https://www.holdenadvisors.com/solutions/pricing/value-based-pricing/) - [Insights](https://www.holdenadvisors.com/about/overview/#) - [Blog](https://www.holdenadvisors.com/blog/) - [Video Series](https://www.holdenadvisors.com/about/overview/#) - [Pricing with Confidence](https://go.holdenadvisors.com/pricing-with-confidence) - [Publications](https://www.holdenadvisors.com/about/overview/#) - [Books](https://www.holdenadvisors.com/insights/publications/books/) - [White Papers](https://www.holdenadvisors.com/papers) - [Newsletter](https://blog.holdenadvisors.com/tag/newsletter) - [Case Studies](https://www.holdenadvisors.com/studies) - [Events, Webinars & Podcasts](https://www.holdenadvisors.com/insights/events-webinars-podcasts/) - [Reed’s Bookshelf](https://www.holdenadvisors.com/bookshelf) - [Contact](https://www.holdenadvisors.com/contact-us/) - About - [Overview](https://www.holdenadvisors.com/about/overview/) - [Core Values](https://www.holdenadvisors.com/about/core-values/) - [Leadership](https://www.holdenadvisors.com/about/leadership/) - [Partners](https://www.holdenadvisors.com/about/partners/) - [Careers](https://www.holdenadvisors.com/about/careers/) - [Solutions](https://www.holdenadvisors.com/about/overview/#) - [Sales](https://www.holdenadvisors.com/about/overview/#) - [Overview](https://go.holdenadvisors.com/solutions/sales/improve-sales-performance) - [Negotiating With Backbone](https://www.holdenadvisors.com/solutions/sales/negotiating-with-backbone/) - [Selling With Backbone](https://www.holdenadvisors.com/solutions/sales/selling-with-backbone/) - [Coaching](https://www.holdenadvisors.com/solutions/sales/coaching/) - [Pricing](https://www.holdenadvisors.com/about/overview/#) - [Overview](https://go.holdenadvisors.com/solutions/improve-pricing-performance) - [Audit](https://www.holdenadvisors.com/solutions/pricing/audit/) - [Analytics](https://www.holdenadvisors.com/solutions/pricing/analytics/) - [Value-Based Pricing](https://www.holdenadvisors.com/solutions/pricing/value-based-pricing/) - [Insights](https://www.holdenadvisors.com/about/overview/#) - [Blog](https://www.holdenadvisors.com/blog/) - [Video Series](https://www.holdenadvisors.com/about/overview/#) - [Pricing with Confidence](https://go.holdenadvisors.com/pricing-with-confidence) - [Publications](https://www.holdenadvisors.com/about/overview/#) - [Books](https://www.holdenadvisors.com/insights/publications/books/) - [White Papers](https://www.holdenadvisors.com/papers) - [Newsletter](https://blog.holdenadvisors.com/tag/newsletter) - [Case Studies](https://www.holdenadvisors.com/studies) - [Events, Webinars & Podcasts](https://www.holdenadvisors.com/insights/events-webinars-podcasts/) - [Reed’s Bookshelf](https://www.holdenadvisors.com/bookshelf) - [Contact](https://www.holdenadvisors.com/contact-us/) # Holden Advisors Blog # Thinking vs. Reacting in Pricing Posted by [Reed Holden](https://blog.holdenadvisors.com/author/reed-holden) on Aug 13, 2015 8:00:52 AM ![Reed Holden](https://blog.holdenadvisors.com/hubfs/Reed_Holden-081_CROP-150x150.jpg) - [Tweet](https://twitter.com/share) From: How Fiat Chrysler '[Got Smart on Pricing](http://usat.ly/1TeM1od)' USA Today August 10, 2015 This is a great article with an important message: Think about your pricing.  Fiat Chrysler merged in 2014 and Fiat's CEO, Sergio Marchionne took over the struggling auto maker.  At the time, their profits were half of their cross-town rivals, Ford and GM.  So Mr. Marchionne decided to start thinking about pricing.  What's unusual about that?  Usually executives react to pricing. And, that reaction is almost always down. - Need to sell more…..lower price. - Need to increase share…..lower price. - Need to close a deal….lower price. When you react to something with price, it always goes down. When Mr. Marchionne started thinking about price, he realized that he had some popular brands and decided to raise price.  Profits and revenue went up.  One of his most expensive brands, the Charger SRT Hellcat sold out.  He'll raise price on that one too.   He reduced low-price sales to rental fleets which freed up capacity for the more profitable cars.  He increased prices by 1% to dealers.  That $200 per car helped improve profits and revenue.  Finally, he cut back on customer incentives knowing that general market sales were increasing due to low gas prices and profits increased. Looking back on Marchionne’s decisions, his changes seem logical and “easy”.  He innovated with new and better models to get the demand and the growth in revenue and profits.  Plus he started thinking rather than reacting about price.  But if it’s so easy, why do executives seem to struggle to increase sales and revenue? ### **Search the Holden Advisors Blog:** This is a search field with an auto-suggest feature attached. - There are no suggestions because the search field is empty. ### Subscribe Below: ### Recent Posts ### Posts by Tag - [Pricing with Confidence (68)](https://blog.holdenadvisors.com/tag/pricing-with-confidence) - [Negotiating with Backbone (63)](https://blog.holdenadvisors.com/tag/negotiating-with-backbone) - [Selling with Confidence (43)](https://blog.holdenadvisors.com/tag/selling-with-confidence) - [Newsletter (41)](https://blog.holdenadvisors.com/tag/newsletter) - [Uncovering your Value (26)](https://blog.holdenadvisors.com/tag/uncovering-your-value) - [Celebrating 10 Years of Pricing with Confidence (12)](https://blog.holdenadvisors.com/tag/celebrating-10-years-of-pricing-with-confidence) - [value selling (9)](https://blog.holdenadvisors.com/tag/value-selling) - [Selling with Backbone (8)](https://blog.holdenadvisors.com/tag/selling-with-backbone) - [value (8)](https://blog.holdenadvisors.com/tag/value) - [pricing (6)](https://blog.holdenadvisors.com/tag/pricing) - [Commercial Transformation (5)](https://blog.holdenadvisors.com/tag/commercial-transformation) - [Setting Price (4)](https://blog.holdenadvisors.com/tag/setting-price) - [customer experience (4)](https://blog.holdenadvisors.com/tag/customer-experience) - [actionable insights (3)](https://blog.holdenadvisors.com/tag/actionable-insights) - [procurement (3)](https://blog.holdenadvisors.com/tag/procurement) - [sales (3)](https://blog.holdenadvisors.com/tag/sales) - [Pricing Strategy (2)](https://blog.holdenadvisors.com/tag/pricing-strategy) - [big data (2)](https://blog.holdenadvisors.com/tag/big-data) - [buying center (2)](https://blog.holdenadvisors.com/tag/buying-center) - [customer loyalty (2)](https://blog.holdenadvisors.com/tag/customer-loyalty) - [pricing metrics (2)](https://blog.holdenadvisors.com/tag/pricing-metrics) - [winning proposal (2)](https://blog.holdenadvisors.com/tag/winning-proposal) - [Driving Accountability (1)](https://blog.holdenadvisors.com/tag/driving-accountability) - [Silos (1)](https://blog.holdenadvisors.com/tag/silos) - [b2b pricing (1)](https://blog.holdenadvisors.com/tag/b2b-pricing) - [bundling (1)](https://blog.holdenadvisors.com/tag/bundling) - [gatekeeper (1)](https://blog.holdenadvisors.com/tag/gatekeeper) - [jump the shark (1)](https://blog.holdenadvisors.com/tag/jump-the-shark) - [on demand (1)](https://blog.holdenadvisors.com/tag/on-demand) - [peloton (1)](https://blog.holdenadvisors.com/tag/peloton) - [pricing models (1)](https://blog.holdenadvisors.com/tag/pricing-models) - [product portfolio (1)](https://blog.holdenadvisors.com/tag/product-portfolio) - [rabbit (1)](https://blog.holdenadvisors.com/tag/rabbit) - [revenue (1)](https://blog.holdenadvisors.com/tag/revenue) - [rolling stone (1)](https://blog.holdenadvisors.com/tag/rolling-stone) - [subscription (1)](https://blog.holdenadvisors.com/tag/subscription) - [tidying up (1)](https://blog.holdenadvisors.com/tag/tidying-up) See all ### Newsletter and Blog ### About Us Holden Advisors are experts in the pricing and sales performance development space.  We help our clients take control of their differential value and use it to transform their business. ## [Learn More](https://www.holdenadvisors.com/negotiation-value-pricing-consultants/) - Quick Links - [Contact](https://www.holdenadvisors.com/contact-us/) - [About](https://www.holdenadvisors.com/about/overview/) - [Blog](https://www.holdenadvisors.com/blog/) - [Books](https://www.holdenadvisors.com/insights/publications/books/) - [Case Studies](https://www.holdenadvisors.com/studies) - [Negotiating With Backbone](https://www.holdenadvisors.com/solutions/sales/negotiating-with-backbone/) - [Value-Based Pricing](https://www.holdenadvisors.com/solutions/pricing/value-based-pricing/) - [Privacy Policy](https://www.holdenadvisors.com/privacy-policy/) - [Home](https://www.holdenadvisors.com/) Copyright © 2018 Holden Advisors. 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