Don’t Negotiate Prices if You Care About Your Customer Relationships
This article describes lessons learned from a pricing professional’s several ride-alongs with sales reps in many industries. Although these trips were all unique in many ways, there were a few important commonalities that re-shaped the author’s thinking on the role pricing should play in a sales relationship, which he summarizes here.
Should You Raise Prices Right Now?
As inflation rises, more companies are announcing price increases. These are six factors to consider when deciding whether to follow suit, as the author explains.
Experience Economy Set to Profit from Renewed Pricing Power
With wide-scale vaccine rollouts well underway, our entry into a post-pandemic world is already a reality for some and an inevitability for others. Those within the experience economy who establish strong pricing strategies by capitalizing on their pricing power, gaining consumer confidence, considering consumer behavior, and identifying value drivers will maximize profits, overcome pandemic-related losses, and set the groundwork for long-term success. One thing is for sure – there’s no time to lose, as the author explains.
Seven Keys to Successfully Increasing Prices in 2021
In today’s post-pandemic, rising inflation economy, most companies realize a need for a price change. If you are considering a price increase today, which you likely are, here are the seven key factors for enabling a price increase to succeed.
Pricing and Promotions: the Analytics Opportunity
Many retailers underestimate the value of coordinating decisions on pricing and promotions. A new pricing analytics approach can help.
Five Steps to More Profitable Chemicals Pricing
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.
Top Questions that Need Answers Before Implementing a Sales Promotion
Price reduction is a tool for companies to encourage the sale of their products. However, to generate greater effectiveness from promotional campaigns, there are several key questions that must be answered when designing and implementing promotional campaigns, as the author explains.
Value Pricing in the Gross Profit Margin Trap
GP% (Gross Profit Margin) is used broadly for pricing decisions across many organizations, namely those which transition from a legacy in cost-based pricing towards a more value-based pricing approach. However, GP% is not an appropriate measure for price setting. Employing GP% in value pricing is just one of many examples where an overly simplistic compromise is often made, sometimes putting a business into bedlam, as the author explains.
The Correlation Between Price and Consumer Preference
This case study outlines a pricing transformation project that provided $3 million in short-term pricing opportunities and $10 million in long-term margin improvement opportunities. The project realized these outcomes by harnessing consumer pricing research to determine if different customer segments shopped using specific retail channels, and if so, which products should be offered through each retail channel, and at what price.
Supply Chain Tribulations
There is a lot of uncertainty in the system right now. Things are improving, but global supply chains are fragile. And it is quite possible that the most recent stimulus bill will create even more e-commerce demand, which will send even more products into this already scrambled supply chain. There are opportunities for any company that can adjust to the present environment, as the author explains.
Which is better: a 1% increase in price or a 1% improvement in your revenue growth rate?
If your goal is to increase the value of your company, which will have a bigger impact? A 1% increase in price or a 1% increase in growth rate? The answer may surprise you, as the author explains.
How Precision Revenue Growth Management Transforms CPG Promotions
Many consumer-packaged-goods companies are stymied because they do not know how (or think it will be too hard) to make the leap toward much greater transparency on the true impact of promotions. The reality is that getting quick results is feasible. CPG companies are learning that the insights derived from advanced analytics capabilities enhance promotion performance—and the bottom line, as the authors explain.
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