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
Pricing Strategy
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.
Custom Models
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: