While pricing is the most important profit driver, what drives pricing excellence is a good team and the process that they support.
A good pricing organisation can be a bedrock in incorporating the buyer preference accurately in the pricing management process. Any pricing manager has to worry about constant requests for discounts from the sales team. She also also to be cognisant to the impact of intra-company pricing issues.
How should a pricing manager build her team and set processes that helps the company attain higher profitability and maintain a long term leadership in the market?
What is Pricing Process Evaluation? Pricing Process Evaluation service helps clients measure the maturity of their team and processes against the best in class.
How is it done? Pricology team evaluates a sample of documents and conducts interviews with the pricing team. The aim is to identify the current state of key pricing processes.
For example, are the discounts linked to bigger deals or client’s life time value? Are the key accounts monitored for their profitability and penetration of premium products. Is the invoicing and collection process tuned in?
These findings are measured against the best practices and improvement areas are identified.
These findings are further validated with client’s internal experts before any recommendations are made. Many of these recomendations have a direct dollar saving.
How does it help the clients? The Pricing Process Evaluation service helps the clients improve process around invoicing, contract best practices, approvals, and account level profitability management.
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