I know there is a better way to do it, and I know that pricing can be the biggest thing we do this year to drive profits, but I’m not sure where to begin.President of a $2bn company
This paper summarizes the best approaches we have seen distribution companies use to improve pricing, and outlines a basic methodology which we have seen work successfully many times. The key? Firstly, developing a robust understanding of the powerful and practical science behind pricing, specifically: your cost dynamics, price sensitivity and local market competitiveness. Secondly, engaging the business –particularly the sales force – in the solution. Thirdly, building pricing competence at the corporate center, including better processes and decision support tools to sustain the benefits.