Connect the Dots
To win in pricing, broaden your view
Most companies think of price as a noun, not as a process. All employees can tell you (or find out) the current price for a given product, most can tell you the last time the price was changed and some can articulate the reason for differences in the prices between products. However, very few employees can describe the process by which prices are developed, the governance involved in making pricing decisions, or how pricing strategy supports their company’s overall objectives. One theme that united our varied work with clients across industries is that long-term results can be improved when the price isn’t just “right,” but when pricing is managed as a well-defined discipline and a sustainable capability.
In this article, we’ll look at how business leaders can avoid the mistake of taking an overly surgical approach to pricing, acknowledge and understand pricing interdependencies and generate more value from their efforts in the area of pricing. Specifically, we’ll examine four components of pricing—elements that can make the difference when they’re addressed collectively.
This article originally appeared in the Professional Pricing Society’s Pricing Advisor newsletter and is the second in a three-part series. Our first piece analyzed 100 pricing projects to find out how long they took, what they delivered and where results came from. Our final article examines the price one must pay for pricing effectiveness.
Download the full report by clicking the link above.