Managing pricing effectively can have a greater bottom-line impact than focusing just on costs. The math is straightforward: A company with a 65% gross margin and operating costs of 50% of sales would need to reduce its cost of sales by 3% or cut operating costs by 2% to equal the result of a 1% improvement in realized pricing.
But a price optimization project is a major undertaking for any company. There are often multiple internal stakeholders, and it is likely to affect a wide range of internal systems and processes. When done right, it can be one of the most profitable activities a company can undertake. But when done wrong, the dangers are equally significant. Read the full article at MarTechSeries…