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Pricing and Profitability Tools


Our experience shows a common challenge for organisations is the effective execution of pricing guidelines. While sales representatives in the field need to be flexible to respond to market and customer requirements, our Transactional Pricing Analytics have frequently revealed significant inconsistencies in how sales organisations are executing pricing polices and applying discounting and rebating guidelines. We have seen that despite customer segmentations being in place, discounts are often applied in a more random fashion in the field.

To achieve a greater degree of alignment and improve an organisation’s profitability, Deloitte supports its clients in developing and rolling out Pricing and Profitability Tools.

Our Pricing Tools are Excel-based and designed to support decision making by sales managers and finance users when considering potential deals with customers. This is achieved by providing information and governance in a clear and rapid manner and building an increased focus on margin across the business. Such a tool has the following objectives:

Reduce margin leakage. Sales organisations are able to maintain price levels by establishing discount conditionality and enhanced product, customer and channel profitability analytics. These measures in turn, control margin leakages across the price waterfall/ lifecycle.

Enforce pricing policies and governance. Our tailored Pricing and Profitability Tools help improve pricing processes through greater organisational alignment.

Improve transparency and knowledge sharing. The tool provides pricing information to users in a format that is easy to use and can be tightly controlled. It allows information to be shared easily so that decisions can be made at the appropriate level, and with input from the right people.

Consolidate all relevant data in one place. Subject to the availability of data, information typically includes existing discounts, trading terms and rebate structures, product and sales costs, net margin, sales history and forecasts and supply chain data.

Keep in mind, however, that our Pricing and Profitability Tools are not “just practical” IT tools. As we support all types of organisations, we have an in-depth understanding of industry best-practice and industry-specific requirements to help you compete with your peers more effectively.

Key characteristics of Pricing and Profitability Tools:

In creating pricing optimisation tools for our clients we always keep in mind what is most important to them – usability and effectiveness. Therefore, our tools accomplish the following:

  • Ease of use for all involved staff
  • Short development phase
  • Independent from complex IT systems
  • In line with corporate and commercial strategy
  • Aligned with local requirements
  • Structured along the pricing governance
  • Including pricing reporting KPIs
  • Flexible structure allowing easy future adjustments and ongoing development

Profitability Tools

List of features:

Depending on a company’s needs, data quality and resource availability, a multitude of features can be developed for different users of the tool:

  • Initial investment analysis
  • Scenario analysis
  • Customer segmentation
  • Customer comparison cockpits
  • Price calculators
  • Price approval status
  • Account and action planning
  • Budgeting and forecasting
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