Pricing Studies – Then What?
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.
Excerpt from “Many Worlds, One Life”
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.
Debunking the Myths of Dynamic Pricing
Companies can generate higher revenue and margins by implementing a more dynamic approach to pricing. The first critical step is for companies to see through the myths around dynamic pricing, which will help provide the ambition and the direction to start their journey.
The Worst Pricing Decisions
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.
Can You Protect Your Business and Clients from Cost Shocks?
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?
When Pricing, Adaptability is Useful
Pricing professionals must be adaptable in general and, more importantly, must be prepared to adjust pricing in response to changing market conditions. And market conditions just keep on changing. And it appears as though the changes are coming more frequently, as the examples in this article demonstrate.
The Reality Behind the Upcoming Cost Explosion
As the economy begins its post-COVID recovery, coupling disrupted supply chains with increasing demand and rising materials costs, managing pricing dynamically and doing so ethically (and with the best interest of supply chains) is important. We cannot forget that short profits might damage long-term reputation and credibility, as the author explains.
CPQ Not a Panacea: Five Reasons CPQ Does Not Fix Pricing Problems
Author Lydia Di Liello, pricing expert with more than 25 years of experience, recently interviewed four fellow senior pricing experts to get their perspective on what CPQ (Configure, Price, Quote) is really all about. In this article, she highlights insights from those interviews to educate pricers about what aspects of pricing CPQ does and does not help, and explores the fact that, while CPQ is often supported by software, it is equally a mindset of defining, setting and controlling business processes to achieve repeatable, consistent price for highly configurable products.
Choosing the Right Pricing Model for Equipment as a Service
Makers and sellers of industrial equipment and machinery would like to capture more value from their wares by retaining ownership and charging customers for subscription rates. But the transition to this model has been slow, reflecting the difficulty in pricing accurately. For the model to work, sellers and buyers have to understand the value the equipment adds to the business, and agree on how to share it, as the authors explain.
Bionic Revenue Management in Travel and Tourism
In this article, the authors provide data-driven strategies to help companies readjust their pricing strategies during these challenging times. Although focused primarily on travel and tourism industries, this article provides pricing insights that can be applied in multiple business markets and types.
Change Management for Pricing Initiatives
In this article, the author provides a framework for managing change through a pricing transformation and highlights the benefits companies can expect to gain from price management automation and pricing transformation initiatives.
From Free Fall to Gliding: The Agile Cost Management Challenges in an “After Corona” World
The one trait that will separate the winners from the rest in this pandemic is a rare combination of capabilities that we call commercial agility: the ability to make resilient pricing, design, sales, and cost management decisions with unprecedented speed and flexibility – over and over again – until some form of equilibrium returns to your market.
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