Many companies still consider pricing to be a tactical lever that starts and ends with setting prices. Others get stuck when it comes to investing in the necessary skills and tools. The result? Value is left on the table and price wars can ensue – not because businesses have lost control of pricing, but because they never controlled it in the first place.
In the following articles, we seek to understand why pricing is so misunderstood, and discuss how your organization can benefit from more effective pricing strategies.
Unlocking the potential of pricing. Unlock the huge potential of pricing through flexible, dynamic and value-orientated pricing strategies.
This article identifies the organizational, behavioral and psychological barriers to good pricing practice – and outlines how these can be overcome. It raises issues like accountability for pricing, where it should sit in in the organization, and the moral and ethical challenges of dynamic pricing.
Unlocking the potential of pricing: Are you thriving in the water or lost at sea?
This report looks at the critical factors that can drive better pricing. It showcases the results of a 300 executive interviews across a range of sectors including industrial markets, retail, telecommunications, consumer goods and media. The survey shows a desire to raise profitability through pricing, as well as an admission that there is room for improvement.
The 10 percent profit opportunity: why pricing should be at the top of the board agenda.
Traditionally, pricing has been viewed as a tactical lever to drive volume, rather than a board imperative. But companies that treat pricing as a strategic capability should outperform their peers on sales and profit growth. KPMG research indicates that companies are confident that more effective pricing can generate 5 percent – 10 percent profit improvement. This means rethinking the relationship between price and volume, and not just lowering prices because everyone else is doing so. More importantly, it means basing prices not on cost-plus, or on peers’ activity, but on the perceived value the product or service creates for customers.
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