Effective Pricing Process
An effective pricing process starts with setting optimal prices for your products/services, and continues through designing powerful commercial policy. An effective process is based on sustainable pricing infrastructure and your capability to communicate value and prices effectively.
What approach should you take when setting prices? Using value base pricing has the potential to extract the highest value and profit.
In this approach, we evaluate products’ attributes compared with competitors, using customer-centric point of view, rather than a cost-based approach.
A powerful commercial policy is design to drive desired channels behavior while optimizing profit.
A good policy, manages discounts and rebates ‘spending’ with clear ’pay-for-performance’ incentives. It uses differentiated products to pull-through sales of more-commodity products, while adapting the offering to various customers segments.
Creating pricing infrastructure and getting the organization buy-in, are often the hardest challenges of many companies.
Nevertheless, developing pricing driven organization is vital for sustainable profit management ! Pricing infrastructure includes: setting processes, establishing pricing teams, KPI’s and systems.
How do customers perceive prices? what emotional effect do prices trigger? should sales reps communicate % discount or € discount?
Understanding the ‘psychology of pricing’ and decision making process of your customers, can quickly improve your pricing strategy and value communication.
Getting The Price Right
We are not searching for the highest price. We are after the right price
Optimize Commercial Policy
Smart rebates to drive channel behaviour and optimize distribution margin
Transforming mind-set by aligning teams and performance management
Transferring our know- how to ensure pricing excellence to our customers
Power of Pricing is a boutique pricing consultancy based in Switzerland.
We propose our customers:
• Pricing projects
• Pricing workshops / trainings
• Pricing tools
Power of Pricing provides practical, easy to understand, hands on approach.
Every price improvement translates directly from the top-line into the profit line. Therefore, our work usually has immediate impact with measurable results!!
When working with commercial and marketing teams, we emphasize the ‘buy-in’ process. We aim at change mind-set: move skeptics participants into advocates