Price is the only element of the marketing mix which appears on the P&L directly and has a direct impact on the financial health of the organisation
Pricing is one of the most overlooked areas of most businesses and is one of the areas and reasons why organisations miss their profit objectives , a 30% discount on a mid profitability business will need 4 times as much volume to recover the effect of that discount , did we really need to discount in that particular case ?
End user or channel
Pricing tends to be dormant and resembles an iceberg , review pricing objectives to give your pricing life and drive finance and profitability engagement.
Gross / Nett Profitability
Deliver clear profit goals from both a gross and nett perspective , let not price levels surprise you , set clear goals.
Organisation structure set right allows tremendous flexibility to the price control and management mechanism with great strategic and operational flexibility .
Align pricing standards with financial standards to establish excellent principles of price management and establish audit centric capabilities and management.
Price list construction
Extend deal pricing based on special qualifiers , schedule’s and pre designated qualifications .
Ensure your prices are set and controlled so no price can breach the floor and upset your financials
Successful companies drive price with a clear schedule and process of ownership , each function has to play a role as each job title does.
Base decisions on a RACI matrix so all stakeholders are clear on their deliverables and alignment
Set up pricing scorecards to drive visibility and efficiency
Set reports and prefill them to drive analytics and keep organisations informed constantly.
Selecting the strategy
pricing strategies based on life cycles, objectives, and product strategies
Align pricing with the knowledge of what your competitors are executing in market.
The PLC plays a large part in strategy , align your strategy and management accordingly
Well designed pricing tends to be a ladder , with better views the higher you go.
Gross Profitability measurement
Get clear reporting to align your pricing with gross profit that ensures business alignment.
Analysis & Reports
Successful organisations set a pricing policy which includes all the relevant areas of the price control and setting organisation.
Set up pricing with clear structures to ensure it can also be publicly communicated , which is based on a clear structure and organisation.