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The Problem with Pricing...

As a business discipline, pricing has evolved far past the basic intersection of supply and demand taught in high school. Companies have more and better pricing capabilities at their disposal than ever before. Whether they’re using them effectively is a different question.

(...is you!)

Moving beyond traditional pricing methods takes courage. But so does every business decision that matters. If a business aims to create more value for its shareholders and customers through smarter pricing, the CEO must lead the way. Consider this guide as a good way to get started.

Where do you stand?

Given the current challenges, companies need to understand where they stand and in which areas they want to excel in the market. Our Pricing Maturity Level Framework provides the Opportunity to identify your company’s strengths and weaknesses against the market and best-in-class benchmarks.

What now?

Many companies determine their pricing strategy in relation to the marketing of a few high interest products. Their targeted analytics focus on profitability of a few specific customers and products. As a result, there is a limited use of value-based pricing for a broader range of differentiated products. There is a need for specific pricing IT applications to monitor profitability and manage prices with the sales force. Advanced technologies can facilitate effective communication between suppliers and retailers. This is how pricing is today. But pricing tomorrow will be an entirely different story.

The marketplace forces companies to value different things at different times. But not all growth is profitable. Not all revenue is high-quality— which is to say, achieved at the right cost. There will never be a time when pricing doesn’t matter. Pricing has evolved from a blunt instrument to a laser-guided discipline. As much as almost any other function in business, it reflects the essence of strategy.

If you fail to adapt your pricing function to the requirements of tomorrow, the problem with pricing within your company will essentially be you!

Why Deloitte?

With our broad set of pricing capabilities which we have applied extensively at countless clients globally, we are acknowledged by the industry as the number one pricing experts.

  • We have delivered our capabilities through many pricing transformation programmes at leading companies across multiple industries.
  • We are the leading management consultancy worldwide with USD 5.5 bn revenue in 2009.
  • Global access – local touch: We have a local face and our international network provides access to a wealth of insight.

Talk to us

We look forward to hearing from you and learning what you think about our ideas. Please do not hesitate to get in touch with us by completing and submitting the following form, so that our experts can get back to you.

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