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10 Tips for a More Successful Price Optimization Project

By Mitch Lee
April 24, 2019

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…

  • Price Optimization

    Mitch Lee

    Mitch is a Profit Evangelist at Vendavo with 25+ years of experience in the technical, operational, marketing, and commercial arenas of the process industry. Prior to Vendavo, Mitch was with BASF and Orica in product marketing and business management, driving operational optimization, pricing excellence, and margin improvement, as well as personal engagement in high value sales negotiations. Mitch also has deep experience with raw materials supplier portfolio management having negotiated large scale and long-term agreements with global suppliers.