Enablers

Organizations invest a substantial amount of time, data, and assets to develop sound pricing strategies.  Unfortunately, many companies struggle to integrate their pricing strategies and bring them to life in the market due to a lack of internal pricing enablers. For a successful strategy to be sustained and build organizational pricing capabilities, the infrastructure known as pricing enablers needs to be in place to support:

  • Systems: Integrated data that can be easily extracted
  • People: Cultivate strong revenue management-oriented culture
  • Structure: Establish organizational hierarchy and decision-making that supports pricing realization
  • Results & Planning: Established pricing process for granularly measuring and monitoring pricing progress

Without the above pricing enablers you will encounter the following challenges:

  • Taking price increases without realizing bottom-line results
  • Escalating discounting with minimal top-line growth
  • Rising costs translating to shrinking margins
  • Non-sensical pricing that undercuts your brand and channel integrity
  • Sales team wasting time pricing deals versus selling
  • Unable to assess the granular impact of pricing activities
  • Inefficient and ineffective pricing decisions
  • Lack of compliance with pricing strategies/guidelines

To maximize and sustain your pricing strategy, businesses need to equally focus on building the enablers as much as they focus on solving their pricing problems.

Revenue Management Enablers

1

Systems

2

People

3

Structure

4

Results & Planning

Insights

What is Price Segmentation

Price segmentation is a pricing strategy that involves setting different prices for the same product or service to distinct market segments based on customers’ ability and willingness-to-pay. This strategy has been proven to increase revenue and profitability.

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Preparing your Business for a Recession

Recessions are inevitable and difficult diagnose, let alone predict. It’s best to prepare for a recession when you are not in the midst of it. We provide a guide to how to prepare your pricing strategy for a recession.

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