For many companies, the notion that ethics may be a powerful driver of annual revenues is a novel concept. However, for some, this is foundational for their longer-term growth. All may benefit from applying explicit ethical rules, as the authors explain.
Digital pricing transformations are crucial drivers for profit improvement. However, without a clear commercial focus, these projects fail. To become a Pricing Star, companies need to clearly define their commercial strategy, pricing structure, and digital needs. Only once their commercial and digital roadmaps are in sync can firms start reaping the benefits of digital pricing, as the authors explain.
Digital transformation is a broad term used to refer to significant technological changes across human resource, supply chain, customer service, marketing, and finance systems. As a company digitizes, they can increase their capability to monetize assets and optimize their existing data to better inform pricing decisions (and value capture). This in turn makes pricing a prospective part of the transformation journey, as the author explains.
In this article, the author presents a detailed process for developing compelling quantified value propositions. Stephan M. Liozu, PhD (sliozu@gmail.com), is the Founder of Value Innoruption Advisors, a consulting boutique specialized in value-based pricing, industrial pricing, digital and subscription-based pricing.
While intuitive in theory, price elasticity measurements are often too simplistic in scope for practical use in day-to-day pricing decisions. To make better use of this metric in daily pricing decisions, price elasticity should be assessed considering multiple complex factors, which can only be achieved by applying algorithms in an artificial intelligence/machine learning system environment where the algorithm is programmed to evolve in a dynamic way, as the authors explain.
A study of seven leading industrial manufacturers based in Europe shows a clear correlation between overall organizational profitability and the share of total business delivered as aftermarket services. Moreover, a healthy aftermarket service business offers commercial stability in periods of high market volatility. This has played out in the current COVID-19 pandemic environment with companies who maintain the highest share of aftermarket service business able to retain high profitability. Companies need to continuously invest in the aftermarket service business to ensure a more stable and recurring stream of profit., as the author explains, as he provides pricing insights that can be applied across multiple industries.
Whether inflation proves to be a short-term phenomenon or a prolonged reality, companies must react swiftly and wisely. Those who are not using a data-driven pricing approach risk letting this (hopefully) short-term crisis put them at a long-term strategic disadvantage. This article outlines four battle-tested inflation response strategies that deliver the rapidity and intelligence this moment calls for. Learn how to be surgical when increasing prices while incentivizing the right behavior from sales reps.
To remain competitive in fast-paced environments, companies have opted for various improvements across their product features, supply chains, and services offered. But perhaps most noteworthy are those that flip business models on their heads by moving to subscription and usage-based pricing models. This article analyzes seven types of usage-based pricing models, the benefits and challenges of each, and how these models can be harnessed to develop customer trust and loyalty over time.
Many companies fail to earn the full value of their profits because their pricing strategy is not based on the actual decision-making process customers attribute to the product. Pricing studies can provide some help, but they are only the first step on the path to behavioral pricing, as the author explains.
Hermann Simon, Founder and Honorary Chairman of Simon-Kucher & Partners, recently released his autobiography: “Many Worlds, One Life.” The book describes Dr. Simon‘s journey through many worlds, including how pricing became his vocation, how he built the global market leader Simon-Kucher, and how became fascinated by the Hidden Champions.