July 26, 2012
Day one with my personal trainer: his first questions were not about my previous workout routines, but what and how much I was eating? What were my short and long term goals? I wondered why he would care what I was doing outside the gym. I responded that my goals were simple: to get in the best physical shape I can.
His explanation made perfect sense – how much I eat and what I eat (watching my caloric intake aka maintaining a food journal) makes a huge difference in how my body reacts to workouts and how physically ready I am to take on intense workouts.
How does keeping a food journal relate to pricing? When employees are held accountable for their decisions, they tend to make more deliberate decisions rather than just shooting from the hip. Poorly documented, intuition based decisions can result in price and margin variation and margin leakage. Documenting decisions leads to better outcomes, just like when I was keeping a food journal.
The journal forced me to notice how many calories I was eating, how many carbs, how much fat and sodium. The more accurate my food journal was, the better results I was achieving in my workouts, bringing me closer to my short and long term goals.
Pricing Analytics gives a pricing team better insight on historical data (what have we been doing), which can and should be leveraged in better strategic price setting decisions (what can we do based on our past performance); leveraged well with sales process playbooks, analytical tools and insights help those members involved in deal negotiations (what do I need to do to maintain); guiding them in deal negotiations by giving sales team a target price (what’s my goal to attain the desired margin).
So get out there, and start logging and reviewing your pricing data! You will be surprised how quickly you see results.
– Azeez Waheed