Optimal pricing is the number one lever for driving profitable growth. In fact, for an average S&P 500 company, a 1% increase in price results in an 8% increase in operating profit – which is 3.2x more effective than reducing cost and 2.2x more effective than growing volume.
Unfortunately, pricing is not a priority for most companies. In fact, 70% of companies spend 10 hours or less annually on strategic pricing, often due to a lack of pricing knowledge, overreliance on tools, business complexity, industry elasticity and more. As a result, most companies rely on cost-plus pricing or a pricing software with simplified pricing algorithms to get the job done.
Without an adequate pricing strategy, companies suffer from:
Revenue Management Labs takes a balanced approach to pricing by evaluating your customers, competitors and financials. By considering all three perspectives, our team of pricing consultants delivers a unique price strategy that drives sustainable revenue growth.
Our engagements have helped clients:
Acquire all data streams and analyze for completion and accuracy
Review and define business metrics and develop hypotheses on opportunities
Asses internal external environment to find value drivers & price leverage
Simulate the financial impact of the pricing actions undertaken
Train sales team with supporting selling material to ensure customer buy-in
Define roles and responsibilities related to new pricing structures
Facilitate post-ROI analysis of actions undertaken to ensure return on investment
Our team of Revenue Management and Pricing consultants will guide you through every step of the process to ensure a custom solution that caters to your specific needs. To create a value-based pricing strategy to maximize your company’s revenue, contact Revenue Management Labs today for a free consultation.
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Extracting maximum value from your pricing strategy relies on excellent negotiation skills. Often, poor negotiating skills result in salespeople failing to extract maximum value from deals resulting in lost margins.
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