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About the Book

Pricing and Profitability Management


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Pricing and Profitability Management guides readers through the elements of an effective pricing transformation and concludes with a case study demonstrating how a holistic approach can bring bigger and more sustainable benefits.

Here's a closer look at the book, as well as an excerpt from the first chapter.

Chapter 1: Introduction to pricing and profitability management

We introduce our integrated, holistic approach to pricing and profitability management through an overview of each of the six competencies in our model. We also discuss the compelling case for companies to improve their pricing capabilities. Topics covered include:

  • Pricing: The critical lever for improving performance
  • Common obstacles to pricing and profitability management
  • Understanding -- and leveraging -- the human side of pricing
  • Taking an integrated approach: The six core competencies
  • Beginning the journey: Critical questions to ask

Chapter 2: Conducting a pricing and profitability diagnostic

We discuss the approach for assessing an organization's current capabilities and how to use the results to build a roadmap for the efforts that help improve those capabilities in a sustainable way. Topics covered include:

  • The case for a diagnostic
  • How to execute a diagnostic
  • Consolidating findings and identifying opportunities to improve capabilities
  • Potential challenges and considerations

Chapter 3: Developing an effective pricing strategy

We discuss how to define a value-based pricing strategy for your organization. Topics covered include:

  • What comprises an effective pricing strategy?
  • How to make value your focus -- and why
  • Formulating a value-based strategy
  • Designing and integrating an effective pricing structure
  • Identifying and using the principal pricing archetypes
  • Critical challenges faced by pricing strategists
  • Final tips for moving forward

Chapter 4: Price execution

We present an end-to-end “best practice” pricing process framework and discuss how to redesign pricing processes for improvement. Topics covered include:

  • What is price execution? (How processes and policies govern profitable decision making)
  • Using the framework for a “best practice” pricing process
  • Setting policies to reinforce the process
  • Pricing process and policy redesign tips

Chapter 5: Advanced analytics and price setting

We discuss in detail the data and analytics required to manage price and profitability effectively. Topics covered include:

  • Building a transaction-level data set
  • Conducting transactional profitability assessments
  • Integrating cluster analyses to segment customers, products and services
  • Assessing the competition: Value equivalency analytics
  • How demand-based optimization modeling can improve price setting
  • Tips for moving forward

Chapter 6: Achieving effective organizational alignment and governance

We discuss how to achieve support and alignment throughout the organization for effective price management. This involves change management, organizational design, governance and sales incentive/compensation. Topics covered include:

  • Five critical components for aligning a pricing organization
  • Aligning sales to support pricing and profitability goals
  • Identifying and empowering pricing leaders
  • Designing robust organizational and governance structures
  • Implementing change management and adoption processes
  • Evaluating and managing talent
  • Making the organizational commitment to change

Chapter 7: Pricing technology and data management

We discuss the market for pricing software, the functionality in current software packages, how to select a third-party pricing application and implementation recommendations. Topics covered include:

  • An explanation of pricing software
  • History of the pricing software market
  • Building a business case for pricing technology
  • Selecting price management software
  • The pricing software development life cycle
  • Future trends in pricing technology
  • Pricing technology selection and implementation recommendations

Chapter 8: Integrating tax and regulatory policies with pricing strategy

We discuss the tax and regulatory pricing considerations for multinational organizations and present ideas for how to integrate pricing and tax functions. Topics covered include:

  • The convergence of tax and pricing strategy
  • How to integrate pricing and tax functions -- and why
  • Managing pricing and compliance costs to increase returns
  • Navigating regulatory environments when making pricing decisions
  • Where to go from here

Chapter 9: Pricing as a sustainable competitive advantage

We bring together all of the concepts from the previous chapters into a cohesive case study -- based on a real client engagement -- to demonstrate how a holistic approach brings bigger and more sustainable benefits. Topics covered include:

  • Why taking a holistic approach to pricing matters
  • Bringing it all together: A case study
  • Emerging trends in pricing and profitability management
  • How to get pricing on the executive agenda

Download the PDF below to read the first chapter.

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