Management deserves clarity from their revenue variance analysis, especially if the variance analysis is used in making compensation, budgetary, and personnel decisions. In this article, the author provides examples of best practices in performing and delivering these analyses.
Choosing a pricing metric is one of the most important choices in pricing model design, and the variety of pricing metrics is as vast as the different types of solutions available and how they create value. Before choosing a pricing metric, you should know the value metrics for your product or service. Approach this with an open mind, expect to find new insights, and give it the time it requires. This is not the place to rush a decision, as the author explains.
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.
Pricing of standard chemicals is complex. Differences in supplier prices are larger than the laws of supply and demand would account for, and volatility is higher for a variety of reasons. By understanding and mastering this complexity, chemical companies can improve margins by up to 3 percentage points, as the authors explain.
People often ask us about the worst pricing decisions we have seen. There is a lot of bad pricing out there. But most of it is not so much the result of a bad decision as it is the result of ad-hoc pricing decisions, “me too” pricing or people inadvertently stumbling into a price war, as the author explains.
There has recently been a global surge in the cost of raw materials like metal, granite, and even food. Pandemic-related disruptions, increase in demand, intense supply pressures, trade restrictions, tariffs, increasing labor costs, rising import/export costs, and more are wreaking havoc on pricing in the manufacturing sector. Are there options for pricing or contracting that can protect companies from these sorts of price shocks?
On the most basic level, businesses need to meet their customers’ needs by delivering products and services that are considered worthy of the price paid. In each industry, there will be several competitors trying to compete for the customer dollar. The size of your business matters much less than having a sound strategy. This article is an excerpt from the author’s recent eBook “Selecting a Strategy for Market Leadership.”
Many companies are now revising pricing strategies to build resiliency for the aftermath of COVID-19. Companies that refine their pricing strategy with foresight in 2020 will set the stage for a stronger recovery and long- term growth as the crisis abates. In this article, the authors present a roadmap for redeveloping pricing strategy based on insights into three key areas.
As companies emerge from the COVID-19 lockdown into a new business reality, the winners will be those who remain attuned to sound strategies. As you’re developing your adapted business and pricing strategies, you’ll be looking to play to your core strengths, pivot to exploit competitor weaknesses, and take advantage of new white spaces in the market. In this article, the author presents a 3-step game-plan to fuel your post-pandemic strategy.
If your competitors continue to outperform your market offerings in terms of sales volume, despite the fact that you offer both higher quality and lower prices, there are four critical elements you need to analyze in order to identify the cause, as the author explains.