Pricing challenges often start with the conflicting objectives of each functional organization. The factory needs steady product demand to maximize machine throughput; sales focuses on maximum sales dollars to meet quotas and increase variable compensation; and finance desires efficient profit generation to please Wall Street. Pricing influences a company’s delivery against each of these objectives, but in many companies, no one is accountable for integrating and optimizing pricing decisions and activities.

Pricing for value requires that companies build sustainable cross-functional capabilities to effectively set and capture prices. Elements of pricing for value include: developing the optimal pricing strategy, implementing effective pricing processes, measuring and controlling price at the transactional level, and aligning technology with pricing processes.

Getting Results that Matter
Deloitte can help you look at pricing through a strategic lens, by applying the appropriate analysis, discipline, and rigor to this important function. As a result, you will:

• Achieve measurable ROI within three to six months by identifying and pursuing quick wins.
• Develop processes, policies, procedures, and an organization that are aligned with revenue and profit-growth objectives by elevating the prominence of the pricing function.
• Increase control of transaction profitability through active management of the price waterfall.
• Reduce margin leakage by improving measurement and management of sales activities.
• Improve customer profitability by linking cost to serve with pricing levels.

Our Approach
Sustainable competitive advantage through pricing does not come from setting the perfect price or from implementing technology. True advantage comes from creating balanced capabilities in strategy, execution, measurement control, and technology.

Our services provide tangible benefits to the bottom line within a short time and enable repeatable processes that lead to sustained top- and bottom-line performance. We combine deep strategic and operational capabilities with extensive implementation experience to develop value-based, executable strategies. These strategies provide our clients with the foundation for achieving results that matter.