Services
Pricing Process Improvement
The pricing function can be managed proactively through well-crafted processes and guidelines, much like those that exist for the sales, marketing and finance functions. Adopting these pricing processes, however, is never an easy task, as it requires significant planning, effective implementation and often, organizational change – but the profit payback quickly outweighs the effort.
Many organizations however, fall prey to “reactive pricing”. This results from inadequate control mechanisms, inconsistent and poorly documented guidelines, and weak accountabilities. “Reactive pricers” rarely weigh the impact of their decisions on profitability and we estimate that between 5 to 10% of pricing potential is lost in this manner.
To address this, Value Insights employs a unique, five stage process improvement methodology to help clients evolve from reactive to proactive pricers, and in so doing, realize significant profit improvements.
Our professionals are adept at guiding managers through change and work closely with a client to integrate pricing processes in a highly effective manner. By implementing our processes, we prepare your pricing decision makers to manage your company’s profit destiny long after our engagement has ended.
Some of the processes we can help bring some “method” to your pricing practices include:
• Trade Customer Price Negotiations/Bidding Process
• Managing Discount Policies
• Bid/Contract Pricing Process
• Value-Based Selling Process
• Competitive Price Response
• New Product Pricing Process