If You Want to Transform Pricing, You Need to Assess Your Pricing Culture
Any transformation demands a cultural transformation. This is especially true with pricing. A cultural transformation is the only way to evolve mindset and embed pricing processes into the fabric of an organization. Most pricing transformations do a good job of addressing the technical and process side of pricing. While this is a good start, it […]
Is Product-as-a-Service the Secret Sauce to Increased Profitability?
The Opportunity in Value-Based Pricing
Does this sound familiar? A Pricing Fairy Tale An ambitious, recent college grad starts their first pricing job. In week one, they are told to dive into the pricing project for which they were hired: to implement a dramatic change in the company’s pricing strategy. After studying the status quo and learning the layout of […]
Align Your Pricing Software Capabilities with Your Business Model
Price is the top profitability lever any organization can leverage. When aligned with customers’ willingness to pay, price also plays a key role in the delivery of premier customer experiences and inevitable brand loyalty. Further still, custom pricing initiatives go a long way in solidifying customer intimacy strategies. But just as one-size-fits-all pricing fits no […]
Capturing More Value With Price Segmentation
One of the most basic concepts of pricing is that price generally reflects (or should reflect) value. But it’s important to remember that value is not defined
Before Implementing Fees and Surcharges, Consider Your Customer
Drive Better Margin and Customer Experience with Pricing Optimization
Pricing Optimization is a capability that is finally making its way into the mainstream for companies in all industries. The term price optimization deserves some definition though, as buzzwords can confuse rather than clarify understanding. Pricing optimization broadly refers to approaches for setting the optimal list or target prices to achieve a certain objective or […]
Selecting a Suitable Pricing Baseline
The Hidden Costs of Cost-Plus Pricing
In his article “When Cost-Plus Pricing is a Good Idea” Utpal Dholakia, Professor of Marketing at Rice University’s Jesse H. Jones Graduate School of Business, makes a solid argument for why cost-plus pricing is a viable pricing strategy, and why it can be better than customer value-based pricing strategies. He advocates three main reasons: It […]