The 80 /20 business model is not just about squeezing out the complex customers/product lines that only makeup 20% of your revenue. It is also about extracting more value out of those who make up the critical 80% with value-based pricing strategies, as the author explains.
Dynamic pricing has been growing significantly in recent years, notably in the travel and online retail industries. Would this pricing strategy benefit your company’s products? In this article, the authors review common mistakes to avoid when moving to dynamic pricing and best practices for implementing dynamic pricing within your organization.
As pricers, we are analytics people and get very excited about the data that we collect and analyze, only to be frustrated when the rest of our organization doesn’t understand our enthusiasm for our data analytics and resulting pricing strategies. How do we take our insights and convert them into initiatives that our whole organization will support?
The topic of tariffs has recently gained momentum throughout the pricing space, and specifically in industrial and manufacturing markets. To help pricing professionals grapple with some of the complexities of tariffs, and view them as an opportunity to evaluate cost structure and explore opportunities to tighten up pricing processes, in this article, the author has outlined a 3-Step process to help guide price adjustment decisions and strategy.
In a market with increasing competition and decreasing customer loyalty, companies are increasingly moving towards more flexible and predictable subscription models and searching for new ways to engage customers with subscription models over the long term. In this article, the authors present five tips to overcome the challenges of moving to a subscription model and defining a successful pricing strategy.
The era of the 1% rule, the long-term benchmark for the benefits of strategic pricing, is rapidly ending. The much greater pricing opportunities for firms today are in innovation and transformation. In this article, the author explains the reasons for this shift and presents strategies for developing pricing strategies for this new pricing landscape.
Elasticity can be a powerful tool in the kit of a pricer, but used without critical thinking, it can be a very dangerous one, reinforcing bad behavior and even precipitating price wars. While elasticity is a very useful concept, it should be utilized with care for three reasons, as the author explains.
In this article, the author presents strategies for quantifying intangible customer value and presents a practical example of a so-called intangible value driver. The hope is that any pricer reading this can adapt the strategies and example to their own business and use them for better strategic decision making, messaging or more productive customer discussions.
When sales teams aren’t up-to-date on the value of your products, value-based selling methods, or the latest negotiation tactics, a vacuum is created that is filled with “training” messages from the folks they likely spend much of their time with: customer purchasing departments. In this article, the author explains why it is crucial for pricers to refocus sales teams with training and information that supports the value you bring to your customers.
One of the challenges pricers face on a daily basis is maintaining value pricing strategies in the face of sales teams dealing with customers looking to reduce costs. However, as the cases presented in this article demonstrate, sourcing and procurement teams and pricing and sales representatives don’t have to be enemies. In fact, they actually share the common goal of creating value as economically as possible.