Great pricing strategies are useless without execution, and execution is meaningless without results. All too often organizations invest time, data, and assets to develop sound pricing strategies that never make it to the customer. Unfortunately, this lack of pricing conversion leads to organizations realizing poor financial results and stalling on building pricing capabilities and stalling on building pricing capabilities.
Key reasons pricing strategies do not get implemented:
1. Business Risk: Perceived risk of losing the customer cause the organization to back-pedal.
2. Trust Me: Basing decisions on institutional knowledge over data.
3. The Past: Tried pricing initiatives with customers before and was rejected or unsuccessful and team apprehensive to try it again.
4. Hands are Tied: Contractual or customer requirements that restrict optimized pricing strategies from getting implemented.
5. Data Integrity: Issues with the data compromise the integrity of the pricing strategy optimized.
How Revenue Management Labs helps you overcome pricing strategy execution issues:
1. Business Risk: Focus on the customer value being provided versus the competition and assess whether the proposed pricing strategy will truly put the customer at risk.
2. Trust Me: Build a culture of data-driven decision-making.
3. The Past: Identify what has changed from the past that will increase the team’s probability of the pricing strategies’ success.
4. Hands are Tied: Understand the nature of customer pricing obligations (contractual vs. sales commitments) and develop customer-level phased implementation plans.
5. Data Integrity: Define the breakeven point and the level of tolerance allowed for errors in the pricing strategy to gauge risk.
While most pricing consultancies leave clients with a slide show showing key recommendations with large dollar returns, we translate strategies into a granular plan at the customer and offer level, and partner with our clients to implement it. At Revenue Management Labs we:
How do we ensure that we can successfully sell-in your pricing strategies to customers?
We utilize a joint business planning framework that aligns your objectives to your customer to find win-win solutions that result in your pricing strategies being successfully implemented.
Branding
Innovation
Differentiation
Insights
Service Level
Customer Benefits
Schematic
Display
Promotional Calendar
Features
Price
Trade Support
Results
At Revenue Management Labs, your organization’s progress is measured by the quality of results delivered together. We partner with you to ensure that you are in a proper position to convert opportunities into results by integrating ourselves into your team and holding ourselves jointly accountable for pricing success.
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