Of the 4Ps, Price is the only one that generates revenue. Yet, it is often the most neglected.

Many companies lazily use Cost-Plus Pricing. But MBA-trained marketers use Value-Based Pricing. If software costs you $0 to duplicate, but it saves a corporation $100,000 a year in accounting labor, you don't charge them $10 (cost-plus). You charge them $10,000 (value-based).

To do this, you must understand Price Elasticity:

• Inelastic Demand: If you raise the price, people still buy it because they have to. (e.g., Gasoline, insulin, or a required college textbook). You have high pricing power.

• Elastic Demand: If you raise the price even slightly, people stop buying it because there are many substitutes. (e.g., A specific brand of orange juice). You have low pricing power.