Pricing Strategy &
- How well is pricing managed in your business?
- What steps can you take to mitigate margin risk in your business?
- What pricing initiatives can you implement to generate earnings growth?
What is the Pricing Strategy and Operations Diagnostic?
The Pricing Strategy and Operations Diagnostic is an independent assessment of your current pricing practices that identifies margin risks and earnings opportunities via a series of quick wins and longer-term strategic initiatives. A typical diagnostic duration is 4-6 weeks.
You may have observed the following pricing risks in your company:
- Undefined value drivers
- The pricing structure is complicated and challenging to manage
- Bureaucratic pricing operations
- Inability to implement effective price increases
- Difficulties when negotiating with procurement
- Discounting to win or retain business
- Commodity mindsets
- Management misalignment
These pricing risks, left unchecked, will result in margin erosion and a decline in earnings.
Why Undertake a Pricing Strategy and Operations Diagnostic?
Undertaking a Pricing Strategy and Operations Diagnostic is a fast and effective way to identify margin risks and pricing opportunities.
It will enable you to uncover strategic margin risks and opportunities for immediate margin expansion, to drive earnings growth.
The “Pricing Strategy and Operations Diagnostic” employs a framework that enables companies to benchmark their pricing and operations capability against competitors in their industry. The Diagnostic enables companies to identify their current pricing maturity, areas of weakness, and strategic areas of focus.
The Diagnostic evaluates a broad series of quantitative and qualitative data points from various functions across the business, including sales, marketing, finance, and operations teams. The data gathered from within the company is analysed and translated into commercially practical insights used to inform strategic and tactical pricing decision-making.
How It Works: A Ten Step Approach
With over 150 companies having completed our Pricing Strategy and Operations Diagnostic Program, we have collected an average of 30 individual executive responses per company across 55 key pricing capability questions. As such, we now have 247,000 data points upon which we can benchmark your company’s pricing capability.
When undertaking a “Pricing Strategy and Operations Diagnostic”, we will closely partner with you and your business throughout the following 10-step process:
- The project leader nominates team members for participation (minimum 5, maximum unlimited)
- Initial kick-off session with participants and Pricing Insight to gain alignment and buy-in from key stakeholders
- Interviews are conducted at scale with all team members who take part in the pricing decision-making process via our 55-question cloud-based online interview tool (qualitative and quantitative questions)
- Expert analysis and evaluation of interview responses measured against the “Pricing Insight: Pricing Strategy and Operations Framework.”
- Quantitative sales history data set evaluation conducted to identify potential margin improvement opportunities.
- Evaluate competitor pricing strategies and tactics + customer experience benchmarked against your approach in the market.
- Identify margin risks and a series of quick wins to drive margin expansion and earnings growth.
- Confidential briefing session with Executive Leadership Team on initial findings and recommendations
- A final diagnostic report is presented and issued to management (containing recommendations inclusive of identification of quick-wins and longer-term strategic objectives)
- Strategy workshop session[s] with nominated stakeholders to develop an implementation plan for quick wins opportunities and strategic margin expansion initiatives.
- 10+ margin improvement initiatives
- Identification of crucial margin risks
- Strategic Pricing Operations Roadmap
- Team capability commitment scorecard
- Management Alignment