The Price is Right...
or is it?
The financial services industry is under extreme competitive pressure with retail banking and other high-volume transaction businesses facing a particularly tough challenge to grow profitability. Expenses have been pared, weak competitors eliminated and most markets, and products are mature - growing profitability is increasingly difficult. Yet, enhancing profit growth remains the goal for most. An effective way to achieve this goal is to grow revenues in a manner that does not require expensive acquisitions, facility expansion or staffing increases.
Improved pricing may provide an effective avenue for senior management to meet increasingly challenging growth objectives. An effective pricing program can be implemented for a relatively small investment and can result in large profit increases. Depending on the specific characteristics of a business, a mix of pricing and profitability analysis, price optimization, and price execution initiatives can substantially improve performance and establish a basis for continued profitable organic growth.
Download the attached article to read more about the evolution of pricing, impact across products and fundamentals of effective pricing.