While input cost increases and volatility are challenging, they present an opportunity to improve pricing and institutionalize best practices—but margins will likely suffer if these are not executed in a strategic way, as the authors explain.
Many pricing professionals believe that a value-based approach is the best way to set a fair price for your products and services. But data-driven pricing, when done right, will also lift your profit margins in the short term. Here’s the story of how hunting down hidden data turned profits around for one company.
Pricing professionals have many tools in their toolboxes, but in this article, the author reminds pricers to not underestimate the power of storytelling in pricing projects. Shepherding a management decision can be difficult. Without a story that goes beyond presenting pricing analysis and clearly communicates the results of the analysis, it is nearly impossible.
Strategic partnerships go hand-in-hand with strategic pricing. As the explosion of electronic devices and demand for them continue, and as the shortage of semiconductors continues to exacerbate issues, it’s never been more apparent that all companies need to adapt by understanding their customer and building value beyond pricing. Although focused on the semiconductor industry, this article highlights post-COVID pricing challenges and potential solutions for many sectors.
What is contained within a price? Price is a composite that integrates the solution, the value drivers the solution offers and a connection between the value metrics and the pricing metrics. It is more than a number. Even as a number, how a price is perceived is determined by anchoring and framing effects, as the author explains.
Increased raw material prices, costs incurred due to the effects of the COVID-19 crisis, backlogs of price increases not delivered in 2020: as predicted, these factors are all driving up inflation rates. However, the majority of companies are unprepared for the commercial implications. This article explores how companies can manage and pass on cost increases through the development of robust price increase processes.
After months and months of COVID induced lockdowns and restrictions, many parts of the UK were recently able to celebrate “Freedom Day,” as the government removed almost all remaining restrictions on its citizens and enabled businesses to dial-down some of the social distancing measures in place for the last 18 months. In this article, one UK pricing expert examines what this means for restaurants, cinemas and other experience economy-based businesses looking to attract customer and regain much needed revenue.
Quarterly reporting season is here once again and, while many are doing well, not all companies are shining. What went wrong with pricing? Why do today’s pricing challenges seem insurmountable? How do we manage the huge swings in supply and demand caused by the COVID effected economy and resulting inflation, supply disruptions and unpredictability?
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.