Our Pricing Strategy and Philosophy
Our pricing practice, pricing strategy and pricing management approach is built on two fundamental concepts.
The first, Value-Based Pricing, means setting prices based on the value customers realize by doing business with the firm. That value may be in the form of Perceived Value (soft benefits) or Financial Value (monetary benefits). Our experience shows that most companies do not have rigorous processes for assessing value by customer segment and monetizing that value with an effective price strategy and structure.
This leads to the second fundamental concept, World Class PricingTM. World Class PricingTM Strategy is the continuous improvement of tools and processes to cultivate pricing knowledge and tap into it on a day-to-day basis. The framework is based on benchmark data on 32 core pricing processes that an organization needs to achieve a world-class standard in pricing. We have developed the concept, grounded in Lean and Six Sigma principles, from working with companies in a wide range of industries over the past 15 years.
Pricing Strategy
We are Pricing Strategists. In every engagement we deliver not only a pricing research study or a pricing management process or tool, but also a pricing strategy that integrates directly with the clients’ corporate strategy.
A pricing strategy is a plan that helps the organization achieve its goals, whether they be maximizing market share, profits, volume or share price. By delivering a pricing strategy we ensure that the larger context is not ignored and that we bring the most possible value to each and every assignment.
Pricing strategy is built upon a solid understanding of the 4C’s of pricing: customers, competition, costs and capacity. By effectively integrating the necessary information from each of those areas a pricing strategy naturally emerges out of the data. Most companies struggle with pricing strategy due to a lack of insight with respect to one of the 4C’s. Pricing Solutions helps clients gather the necessary data to ensure they can build a rigorous pricings strategy.
When it comes to pricing strategy, we also provide inspiration. Because of our extensive experience across multiple industries we often uncover innovative pricing strategies that can be cross pollinated successfully from one industry to another.
At Pricing Solutions we ensure that you get a pricing strategy that is linked to the bigger picture and seizes all of the opportunities that are available to you.