Achieving Pricing Excellence is a Journey
Achieving pricing excellence is a journey, but it always starts by having the appropriate pricing strategies in place to guide every pricing decision.
Pricing and revenue management Services
Unlocking the Power of Pricing. In Good and Bad Times.
Business leaders have and continue to focus on prices in their quest for “optimal” prices. However, to truly unlock the full power of pricing, before a single pricing decision is made, business leaders ought to define their pricing strategy and pricing model, and ensure the appropriate organization model is in place to adapt to changing demand, customer needs, willingness to pay, capacity, and competition.
That’s where we come in! Our Pricing and Revenue Management experts have led and executed large transformational pricing program for some of the world most renowned brands.
A HOLISTIC APPROACH TO PRICING AND REVENUE MANAGEMENT
Our team has developed and executed in-market pricing transformation programs that have resulted in +$1.5 Billion of incremental gross profit improvement.
Pricing Strategy and Model
A pricing strategy should reflect the company’s philosophy on how to acquire, retain, and satisfy customers by sharing value with them fairly. Consequently, a pricing strategy arises from intersections and interactions across information sources, economic frameworks, and specific market characteristics.
In formulating your pricing strategy, we will gain an in-depth understanding of the competitive landscape, perceived value proposition of the company’s products / services, target customer base’s purchasing behavior, role of each category and product / service within the overall business strategy, and customers’ path to purchase.
Equipped with these data-driven insights, the pricing strategy is then defined, and subsequently, the pricing model, which is comprised of the numerous levers at the company’s disposal to leverage (e.g., list prices, promotions, personalized offers, etc.).
Category Pricing Strategy
A category pricing strategy evolves from the company’s overall pricing strategy.
As part of a category pricing strategy, we define the role that each product / service plays within a category, the relationships between products / services, and the price gaps that have to be maintained, all of which set the stage for establishing the list prices of each product / service within the category.
Promotion Strategy
Our experience, which is also backed by BCG research, has shown that 40 – 80% of promotions result in a decrease in sales and / or gross profits.
As part of developing a mass promotion strategy, we will start by defining specific objectives that promotions are to achieve, as well as determine how to effectively measure their effectiveness in achieving the said objectives. We will then assess the effectiveness of prior promotions.
Equipped with these business objectives and data-driven insights, the promotion strategy is then defined.
