Price Management
A powerful catalyst to secure profitability in uncertain times
At the onset of an economic downturn, the obvious reaction is to focus on controlling costs, retaining clients, and riding the storm out. But leading wealth managers also focus on setting the right price to secure profits and even thrive and prosper during a recession.
In Private Banking the largest boosts to profitability are earned through improved price management capabilities. In particular, improvements in price realization are twice as effective as any cost reduction measures. But mismanagement can have a strong and recurring adverse impact on profit. Therefore, it is vital to enable your organisation with the right capabilities to manage this powerful profit lever.
A proven solution
Deloitte's price management framework creates balanced competences in pricing strategy, execution, monitoring, technology and organisational development. Deloitte is able to help you to significantly improve your bottom line through measures such as:
- Assessment of price management capabilities to quantify revenue potential, suggest tailored initiatives for improvement and set the right focus to achieve best practice.
- Provide comprehensive market insight to enable informed decisions.
- Create transparency on margin leakage and implement an active price concession management.
- Develop segment-specific service & price propositions to achieve superior market positioning.
- Establish a consistent approach in client value management to zero in on underperforming clients & sales advisors.
- Review retrocession agreements in order to identify unfavourable contracts.
Results that matter
A typical price management initiative leads to a revenue improvement of 6% which falls directly to the bottom line. Based on our experience, price management projects have a ROI of more than 500% and can be started and implemented very quickly.