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.”
This paper is a reprint of Chapter 3 of the author’s most recent book – B2G Pricing - adapted for this Journal. B2G Pricing focuses exclusively on the nuances and specific tactics required in the area of business-to-government pricing.
Who knew that volume discounts can be so profitable? 7-Eleven’s Big Gulp strategy increased its fountain drinks by close to 100% and now Big Gulps represent close to 10% of income at some locations. One of the most misused tactics in pricing is volume discounting. In this article, the author provides tips on how to improve your volume discounting strategy.
While the current global crisis is making it necessary for companies to act quickly, careful consideration must be made regarding pricing decisions and strategies. Rash actions can have detrimental effects that can become long-term burdens, and poor decisions in a time of uncertainty can result in years of rebuilding in order to restore profitability. In this article, the authors present immediate actions that you can take to protect your company’s cash flow while also ensuring its long-term success.
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.
The COVID-19 crisis is likely to confront companies with several rounds of devastating economic impacts until a vaccine becomes widely available. What “vaccine” can a company take to steel itself against these impacts? Commercial agility – a rare combination of capabilities – is what will separate the winners from the rest as the pandemic persists, as the authors explain.
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.