Strategic Pricing

Path of least resistance to increased profits

FACT

For most companies, better management of pricing is the fastest, most effective path to increased profits

Based on a study of 2400+ companies:

1% improvement in price yielded 11% improvement in operating profit.
1% improvement in variable cost yielded 7.8% improvement in operating profit.
1% improvement in sales volume yielded 3.3% improvement in operating profit.
1% improvement in fixed cost yielded 2.3% improvement in operating profit

Good pricing strategy integrates key elements of financial, marketing and sales strategies. Effectively thinking through available options and honing in on the best one for implementation is critical for profit optimization. We help clients navigate the analyses that lead to choosing the right strategies, which can include:

Price-to-Value
Cost-Based Pricing
Price-to-ROI
Loss-Leader Pricing
Complementary Pricing
Incentive-Based Pricing
Etc.

We develop customized pricing software tailored to our clients’ businesses. These models are designed to give business insights while providing in-the-field tools for sales and marketing professionals. Examples of model capabilities include:

Cost Analyses (fixed, variable, incremental).
Pricing Point Recommendations (based on strategy)
Profit Calculations (contribution, operating, net)
Real-time ROI/Payback Calculations
Real-time Discount Evaluations
Sales Commission Calculation
Etc.