WHY YOU WANT TO TRANSFORM YOUR COMPANY TO A VALUE BASED PRICING CULTURE
Dear Chief Executive Officer,
Your margins are under pressure, the sales force is discounting out of frustration to win business and you’re under pressure from the Board and investors to achieve budget.
The reality is that your profits are under threat from a wide range of sources: Cost plus pricing, discounting to win business, procurement manager negotiation tricks and a lack of understanding of what customer’s value.
How much control do you have over your pricing strategy, in an age when winning business is becoming harder and customers are fixated on price alone?
It can take years to recover from a price war or rebuild brand equity after endless rounds of discounting or following the wrong pricing strategy.
But there is an opportunity to de risk earnings, improve sales force effectiveness and drive more profitable growth by getting your pricing strategy right.
With the right pricing strategy in place, you will generate more revenue at higher margins.
Additionally, you will reduce the risk of customer defection or competitor price wars.
In turn, this will free up your staff’s time to focus on driving more profitable outcomes.
With the right pricing strategy, your staff will be far more engaged, motivated and committed to achieve the objectives of the business.
With the right pricing strategy, you will realise 200-700 basis points of additional margin across total revenues. Our pricing strategy transformation program will take your business from a cost-plus commodity-based mindset to value-based culture, giving your team the confidence to define, communicate and capture more value.
Most consulting firms are focused on delivering lengthy reports containing impractical recommendations with clients left to figure out implementation.
Pricing Insight take a new and innovative approach. We are focused on generating real cash returns for clients and empowering teams to make more profitable pricing decisions to maximise earnings growth. We work alongside your team to ensure they are equipped with the knowledge, skills and tools to generate sustainable margin expansion and earnings growth.
Our projects deliver a 7-10X return on investment in the first 12 months of implementation
- Does your business have a value-based approach to price setting and management?
- Do you have clearly defined value drivers for customers, products and services?
- Do you have a published pricing strategy?
- Are your staff and executive management team aligned to the pricing strategy?
If you have answered “no” to any of these questions you are almost certainly missing out on at least 200 basis points of margin.
Can you afford to leave this much money on the table? If not, please book in for an initial briefing session to find out if your business is ready to undertake the pricing transformation program.
Gross Margins are under pressure from a range of sources
Which challenges do you have in your business?
Many companies have a limited pricing capability that put margins at risk
Where is your company right now?
Without the ability manage all of the profit levers
And as a result, get negotiated into the tactical quadrant
Lost margin and
missed earnings targets
aVOID COMPETITORS STEALING YOUR VALUABLE CUSTOMERS AWAY
reduce the stress of having to achieve challenging budget targets
MOVE AWAY FROM A COMMODITY MIND SET AND COST PLUS CULTURE
ELIMINATE THE FEAR OF TAKING A STRATEGIC MISTEP IN THE WRONG DIRECTION
IMPLEMENT A MORE PROFITABLE WAY TO ACHIEVE REVENUE GROWTH
We helped Hyster forklifts lift profits by $3.0M USD on $100M in revenues
We helped Staples write $6.8M on $80M revenues
We helped Cummins engines find more pricing power
Extensive experience working with teams across multiple industries
Pricing Insight has developed a comprehensive program of diagnostics, workshops and analytic tools to engage teams, develop solutions and drive implementation of pricing capability and margin expansion throughout a business.
Wide ranging industry experience
Pricing Insight has been asked by the following industries to help them improve profitability:
Generated $7.5M on $250M for an ANZ Timber company
Generated $6.8M for Corporate Express [STAPLES] on revenues of $80M
Generated $1.5M on revenues of $40M
Optimised trade spend and promotional allowances saving $4.3M through Woolworths & Coles
Generated $2.7M year 1 $4.2M Year 2 on revenues of $45M across non-prosthesis list products through private and public hospitals
Current and recent clients
The critical research and analysis undertaken by Ron Wood and his team at Pricing Insight enabled Stuart Alexander & Co. Management to better understand the price positioning of a range of products against the competition.
This research also enabled an understanding of price positioning within channels and was critical in identifying the strategies necessary to drive the greatest margin impact for the business.
I just want to say thanks for all the hard work, effort and strategic thinking you have put into helping us develop our value based sales model. Your ability to declutter our pricing and to help our team better understand the value of the solutions they are selling and risks associated with clients not using our services will be invaluable to us going forward.
“You have a unique way of presenting your considerable expertise and challenging your audience to think and act and I would recommend anyone considering using your services to do so.”
Pricing Insight were engaged by Advent Partners to assist in developing pricing and margin strategies for several of our investee companies. In one case they helped us generate an incremental EBITDA lift of 20% through the application of sophisticated price modelling techniques. We continue to use Pricing Insight for due diligence and our 100 day plans.
Take control of the most powerful profit lever in your business – pricing
Download a chapter from the Pricing Insight book
Australia’s Leading Pricing Strategy Experts
Take control of the most powerful profit lever in your business and generate an additional $2.0-$7.0 million dollars in profit in the next 12 months.
Obtain a 7-10 times return on investment in year one.
1 Bligh Street,
Sydney NSW 2000