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Pricing and Profitability Management

The Problem with Pricing

If your organisation is like most, strategic pricing is often hard to manage because there is an incomplete knowledge of all the disparate activities and how to coordinate them. In many businesses, each function – Finance, Marketing, Sales and Operations – works with a different set of data to make pricing decisions. Different functions also often define goals and reward performance using different metrics, which can be in conflict with each other.

The Potentials of Strategic Pricing

Effective pricing management can help you increase profitability by improving the way you analyse, set and deliver prices, including enforcing pricing policies. The benefits can be realised in both good times and bad. The tools and discipline of pricing and profitability management can help address the immediate issues presented during economic instability, as well as help position a company for long-term profitable growth. A comprehensive pricing strategy is made of multiple layers which create a foundation for price setting:

  • The foundation of Strategic Pricing is Value Creation, or determining what the best value for the customer is.
  • The next step is to establish the Price Structure. The pricing of a product should match the delivered value and cost to serve.
  • Once the Price Structure has been determined, marketing can develop the Price & Value Communication to the customer.
  • The Pricing Process must be able to stand up to aggressive customers and competitors – it should rather influence the expectations and not react to them.

Learn more about Deloitte’s take on pricing.

Why Deloitte?

Deloitte is routinely ranked as the top pricing practice in the world by leading analysts. Maybe that’s because we offer an end-to-end approach to improving the entire spectrum of pricing capabilities, not just bits and pieces along the way. Strategy. Price optimisation. Process improvement. Organisation design. Transaction analysis. Technology selection and implementation. Change management. We have the people and tools to put it all to work together.

Industry case studies

less foam Less Foam more Brew
Transforming pricing and sales in the consumer goods industry
retail pricing Retail Bank Pricing - Resetting customer expectations
Read the point of view based on a customer survey conducted by Deloitte, which analyzes the results of a customer survey on bank pricing.
Twelve Pricing and Profitability Challenges for Life Science Companies
Twelve Pricing Challenges: Read how leading Life Science companies perceive current industry trends...

Research and insight

  • Growth and profitability under pressure
    Deloitte´s approach to growth and profitability comprises of key strategic measures designed to counter market challenges and maximise both top- and bottom-line benefits.
  • Impact of European Austerity on Pharmaceutical policy and pricing
    A UK Deloitte Centre for Health solutions report that looks to understand the current European pharmaceutical market, the mechanisms for reducing pharmaceutical spending, the future of the pharmaceutical landscape, and the actions the pharmaceutical industry needs to take to survive current austerity.
  • Mining for insight
    In recent years, new analytical methods and technologies have emerged to help organizations across many industries make better business decisions...
  • Life Sciences Pricing Survey 2012 Insights
    Twelve Pricing Challenges: Read how leading Life Science companies perceive current industry trends and learn from how they rate their own pricing and profitability capabilities compared to competition and other industries.
  • The Pricing Survey
    Increasing price pressure and fast eroding margins in the Medical Devices industry.
  • Our Pricing and Profitability Management Framework
    We deliver the full range of pricing and profitability services – from pricing strategy, price execution, analytics and price setting to pricing governance, technology and tax – to our clients, helping them to outperform the market.
  • Join us at the LinkedIn group
    Everything you always wanted to know around pricing: discussions, sharing of lessons learned, regular updates on latest pricing news and trends, real case examples, publications, invitations, pricing events and much more.

Tangible and immediate bottom-line benefits of a Pricing Programme

  • Add 1 to 3 percent of addressable revenue to the bottom line in the first six to 12 months
  • Deliver better visibility to pricing and margin information to improve decision making
  • Increase control of transaction profitability through active management of pricing execution
  • Reduce margin leakage by improving measurement and management of sales activities
  • Improve customer profitability by linking cost to serve with pricing levels


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Find out more

  • Our Take on Pricing
  • Pricing Maturity Assessment
  • Transactional Pricing Analytics
  • Price Waterfall
  • Customer Segmentation
  • Pricing and Profitability Tools

Dig Deeper

  • Go big by starting small
    Pricing and Profitability Management
  • Pricing for the Banking Industry
    Unlocking value through pricing excellence
  • The Pricing and Profitability Management Book
    A practical guide for business leaders
  • Transfer Pricing
    Learn more about the offering
  • Sizing the Price
    The Power of Pricing
  • The Price of Pricing Effectiveness
    Is the view worth the climb?

Key contacts

  • Nico Kleyn
    Head of Strategy - Private Sector
  • Dr. Daniel Kobler
    Head of Strategy – Financial Services
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