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C-suite Involvement in Pricing

A hallmark of high performance

As companies seek ways to increase profit margins and improve overall business performance in a challenging economic environment, many business leaders are turning to pricing as a discipline to boost their bottom lines. And for good reason, according to findings from a survey conducted by the Deloitte Global Benchmarking Center and Deloitte Consulting LLP that examined the pricing practices of 40 companies and their financial performance. (See the Deloitte Review article The price of pricing effectiveness: Is the view worth the climb?.) The study showed that even companies that may not have achieved full maturity in their pricing capabilities, but are actively pursuing pricing improvement, often outperform industry peers across multiple financial metrics, including net margin, market valuation, return on assets and return on equity.

“Great companies do pricing very well. We found the link between pricing and profitability recurs both anecdotally and in more detailed analysis,” says Julie Meehan, principal in the Strategy & Operations practice of Deloitte Consulting LLP. She describes the linkages in the article The Price of Pricing Effectiveness, which she co-authored with Chuck Davenport and Shruti Kahlon, both senior managers in the Strategy & Operations practice of Deloitte Consulting LLP, based on the survey results. The team found several common traits in the pricing capabilities of surveyed companies identified as the highest performers.

Read more from the Wall Street Journal

Learn more about the article contributors: 

Julie Meehan
Principal, Deloitte Consulting LLP

Ranjit Singh
Principal, Deloitte Consulting LLP






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