4 Posts Found

What a company should ask itself

• Do we understand customer profitability at the transaction level (by product, customer, and channel)?
• Who really buys our product and why?
• Which customers would we fire? Which customers should we be doing our best to keep?
• Do we scientifically measure pricing choices made by customers?
• What drives our customer segmentation? How do we approach our customers differently?

What a company should ask customers

• Are

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Authors: George Stalk, Jr., Peter Stanger, Peter Wetenhall, Philippe Morel | Source: Pricing Myopia | Subject: Pricing

CEOs should ask the following 20 questions to assess whether their organization is inflation ready in the three critical areas of pricing, procurement, and finance.

Pricing

• Do we have dedicated resources for pricing intelligence?
• Do we employ state-of-the-art pricing analytics?
• Do we have short- and long-term guidelines for price setting?
• Is inflation factored in to pricing decisions?
• Do we have real-time information on competitors’ prices?
• Do we continuously monitor customers’ price

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Authors: Daniel Stelter, Ulrich Pidun | Source: Making Your Company Inflation Ready | Subjects: Finance Questions, Pricing

• Are your pricing policies well-defined, allowing for both control and flexibility?
• Are those policies aligned with strategies to grow revenue and profits?
• Are mechanisms in place to monitor pricing policy compliance over time to identify potential abuse?
• Do you have incentives in place to encourage pricing compliance and increase sales growth?
• Is there a process to handle pricing exceptions? Are they clearly defined?
• Are roles, responsibilities, and decision rights

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Authors: Ann Tansamrit, Donna Stella, Pushkin Pant, Sara Matlock, Shalin Shah | Source: The High Cost of Pricing | Subject: Pricing

• Do we have a thorough understanding of our customers’ purchasing patterns and psychology, and of the drivers of decision making in our category?
• Have we embedded pricing discussions into the innovation and new-product launch process so that any opportunities to bundle or unbundle products, create all-in-one systems, or develop add-on products are identified early on?

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Subject: Pricing