The 5 Key Product Pricing Strategy Lessons You’re Probably Not Following

Setting and executing a product pricing strategy can be an intimidating exercise. However, it does not have to be. There are 5 simple lessons that allow ALL companies to build pricing capabilities and know-how. Lesson #1 – You Need To Get Off The Discounting Drug Develop visibility and a clear understanding of what different promotional depths & activities will deliver in terms of profit. Define where money is being left on the table, and seek to reduce unproductive discounting. Establish rules-of-engagement on when/where to [...]

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What You Must Know About Pricing Elasticity And The Danger It May Bring

Price elasticity is an incredibly powerful tool. However, it should come with a “User Beware!” warning label. There are numerous factors that impact business performance. These include category trends marketing programs competitive activity cost of raw materials and much more However, none of these determinants impact a company’s bottom-line to the extent that pricing does. Elasticity analysis can provide a good guideline for determining how to drive added revenue, market share and profit. Simply put, if you are going to provide any sort of [...]

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How You Can Establish a Pricing Culture in Your Organization

Establishing a pricing culture excellence within an organization does not have to be highly complex or intimidating, but it does require discipline and the commitment of multiple individuals carrying out a few co-ordinated activities. If you think your organization is willing to move beyond its current “comfort zone” and adopt some new tools, analytics, and processes that will take your to the “growth zone”… then keep reading! 1.Senior Leadership needs to play an active role in instilling a focus on pricing within your organization. [...]

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