The Price Whisperer: A Holistic Approach to Pricing Power
This article is a sneak peek at Per Sjofors’ upcoming book “The Price Whisperer.” You can order a copy here. This book explores the complex network of variables that regulate customer perception of price and value, that is, why people buy one product and not another. By isolating key factors that determine a target market’s willingness to pay, businesses can effectively hack their existing model, thereby increasing asking price and sales volume.
How to Grow Despite Inflation
With rising prices, raw material costs, and energy expenses, it’s safe to say goods are more expensive than they have been in years. And there seems to be no relief in sight. In this article, the authors explore best practices for pricers in both B2B and B2C industries to grow profits despite inflation.
Pricing Impact: A Decade of Documented ROI
This paper was originally published as chapter 5 in the book called “Pricing: The New CEO Imperative” edited by Stephan Liozu.
Inflation and Price Increases
Evidence of an inflationary acceleration is accumulating. Price actions by industry leaders are both responding and contributing to it. Price increases are a frequent response to inflation. They can range from purely defensive “layman’s pass-thru”, to opportunities for profit growth. This creates profit opportunities for competitors. Whether followers or contrarians, middle market firms must decide which path is more advisable given their competitive strengths, margins profile, and their pricing “culture.” Timing and preparedness matter, as the author explains.
Ethical Strategy in Pricing
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.
Achieving Digital Pricing Excellence
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.
Pricing and Digitization: Parallel Journeys to Success and Survival
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.
Boosting Confidence in your Value Models Through the Validation Process
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.
Price Elasticities Demystified
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.
The Future of the Aftermarket Organization and Why You Have to Invest in It
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.
Inflation and Pricing: Time is of the Essence
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.
Usage Based Pricing in Subscription Business
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.
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