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Profitability Management and Pricing

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.

Featured Insights

  • Putting a Price on Pricing
    Putting a Price on Pricing
    Is this the right time to improve your pricing capabilities, or should you focus all your attention on today’s immediate pricing challenges? Explore this Deloitte Debate.
  • Profiting from a Recession
    Profiting from a Recession Climate: Effective Use of Transactional Price Management
    At the onset of an economic downturn, a company’s traditional reaction is to focus on controlling costs, retaining its largest customers and hoping to ride out the storm. At best, this is half a strategy.
  • The New Bottom Line in Real Estate
    Pricing, Pricing, Pricing: The New Bottom Line in Real Estate
    An effective transactional price management can drive real, short-term margin improvement to help address the current economic conditions in commercial real estate.

More Dig Deeper

  • Clear and Present Value
    Research shows how retail pricing strategies boost shareholder returns.
  • Putting a Price on Pricing
    In this tough economy, pricing is more critical than ever. Is now the right time to focus on advanced pricing capabilities or should you focus on short-term pricing challenges?
  • 2008 Annual Pricing Study
  • Building Pricing Sustainability for Competitive Advantage
    The power of pricing to drive revenue, profitability, and shareholder value is dependent on an increasingly complex and nuanced interplay of customer decision-making, market conditions, and competitor positioning
  • Profiting from a recession climate: Effective use of transactional price management
  • Chemicals Manufacturer Implements Transaction Pricing Analysis
    Implementation of Transaction Pricing Analysis

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