In the area of pricing, there are many tactical steps that give immediate advantage to companies.
However, the CEO’s also need a view on the long term pricing power of their products and services. Unfortunately, the pricing power erodes slowly and in the process leaves very little strategic manoeuvrability when it takes effect. Continue reading Price Intelligence Dashboard
What gets measured gets done.
This adage is very true in sales. If your product’s value proposition and the market communication is not giving you the requisite results, then you must take a critical look at the sales incentives.
We need to evaluate whether the sales process and incentives hinder long term profitability and market positioning of the firm. Continue reading Sales Incentives Design
Given the seasonality of purchases and heterogeneity of the customer’s pricing power, many companies use promotions to attract buyers.
Price promotion should be used carefully. If they are used too frequently, it can have cease to be effective as customers begin to take promoted price as the list price. Continue reading Promotion Management Tool
Inflation is an ongoing phenomena. However, the prices of products can not change every day, unless you are dealing in commodities. The pricing managers usually review prices once in year. As usual there are fears of customers drifting away, if the price increase is too high.
To this complex mix let us add issues like recession and intensity of the competition. Continue reading Price Updater Tool
Many pricing managers do not have the luxury of a fixed price. This is especially true in negotiated deal.
Think of a Request for Proposal (RFP) for an software service or Engineering, Procurement and Construction (EPC). Every such deal is different. A bidder needs to craft an offering and its corresponding price afresh every time.
Continue reading Pricing Negotiation Tool
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.
Continue reading Pricing Process Evaluation