Pricing Strategy

Pricing Strategy

Pricing Strategy refers to the process that your business undergoes to set prices for each of your products/services. We work with companies to develop strong pricing capabilities and apply our unique World Class Pricing™ framework. Pricing Solutions collaborates with you so that your team can confidently implement your pricing strategy for measurable, long term success.

Common Pricing Strategy Concerns:
  • Re-gaining Control of Your Pricing
  • Setting Prices with Confidence
  • Discounting Effectiveness & Strategy
  • Implementation of Pricing Best Practices
  • Developing A Pricing Framework
  • Capturing Value

Our Profit Transformation Process

Pricing Solutions consistently generate profit improvements with a robust 4-step process.


1. Fix Profit Leakages


2. Discover Value Pricing Opportunities


3. Sell with Confidence


4. Measure Success

Gaining Control of Pricing: Pricing Strategy Case Study

The Problem

Our client, a Global Fortune 500 Manufacturer, felt that they did not have control of their global pricing. Traditionally the company had succeeded in North America and Europe, with marginal sales representation in Asia Pacific and Latin America. Moving forward however, the company wanted to focus on emerging markets in order to grow the business.

The company was growing rapidly, but pricing was out of control. Prices for identical products were much lower in emerging markets than in developed ones. This was leading to gray marketing, customer dissatisfaction, in-fighting between the regions & product lines and potential price wars.

The company did not have a pricing strategy and lacked the processes for making decisions on a consistent basis that would ensure success. Decision rights were unclear and the fear was that pricing and margins were unraveling.

Pricing Matrix

The Solution

Pricing Solutions worked with the client to embed a Pricing Strategy that would effectively achieve the organization’s goals. The chart to the right provides a visualization of the Pricing Strategy “Nodes” that were developed to make the link between value and price. There were 16 nodes, each representing a different pricing strategy based upon the strength of the value proposition and goals of the company.

Processes were instituted to ensure a connection with value-based pricing at all times. These tools included Value Maps, the Pricing Power Assessment Tool, Pricing Strategy Playbooks, Financial Value Calculators, etc.

The Result

As a result, the company now has value based pricing strategies that have dramatically increased organizational confidence. This in turn has led to greater cooperation among the various product lines and regions. The impact: greater profitability. The company regained its ability to move the business strategically rather than transactionally, received guidance on when to say ‘no’ and when to say ‘yes’ to customers and was able to focus on strategic deals that required negotiation and cooperation among the various parties.

Not only did the company regain the high ground of pricing strategy, but also the profitability and sales growth that comes with it!

 

Successful Pricing Projects
In Over 20 Industries

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Our Pricing Services

Pricing Strategy Articles

Is Your Pricing Strategy Ready for the Pricing Season?.

Many organizations begin their annual pricing process in July in order to be ready to start invoicing Jan 1st. There are many factors that drive the timing, including annual budget cycles, customer notification periods, customer pricing blackout periods, printing price books and catalogues, and updating system prices, all of which make this seemingly innocuous process a major exercise.

Pricing Transparency is Leaving Many Companies Feeling NAKED!

Handling global pricing transparency has become a hot button for many of our clients, with Amazon acting as the catalyst. Customers are getting access to prices on a global basis from the web, and are able to compare the prices they pay in their market versus what the product costs in another market, all in a matter of minutes.

Set-up & Automation of a Winning Pricing Strategy

Setting up a consistent and agile pricing strategy and empowering the business into understanding and managing their pricing and discounting policies, in a fully transparent way, drives sustainable margins uplifts and greatly improves the customer experience. The big challenge that many companies are facing all over the world is finding the right way of putting in place a consistent strategy.

Finding Your Pricing Strategy on the 5 Levels to Pricing Improvement

Not long ago I thought it was time to “get personal about pricing,” and wrote World Class Pricing: The Journey. More than 20 years of experience and 700 projects went into developing a roadmap to pricing improvements that now all our clients use. Although every business has a pricing process, it can be difficult to determine where your organization falls in the 5-Levels.