Pricing is probably the most important thing a Marketer does and is a process not a one-time event. Everything starts with a value proposition, and a pricing strategy for the offering whether new or existing. But it doesn't stop there, pricing is the most important profit lever because it affects the top and bottom lines of the P&L.
Most companies fail to get paid for all of the value they create because they don't consider value-based pricing techniques. They may not set the price correctly when a product is launched, and then don't have robust pricing capabilities in the organisation to manage things through the product's lifecycle. Pricing and revenue management touch every part of the organization and should be the top priority of any innovating world-class organisation.
We follow a very simple four-step process, that starts at looking where profit is being given away through poor pricing decisions; and moves onto looking at the discovery of opportunities to apply value-based techniques and adjust prices. When that base work is complete, we roll out the evolving process to the organisation and then measure success. We finish by embedding the new tools and process into the organisation.
Pricing is not a 1-time event but a process that takes time to develop and implement
Value-based pricing to price for launch, then different pricing strategie through the lifecycle
As service offerings becoming more complex higher levels of pricing excellence are required
What is the story, and how do we message that story in the language of the customer?
Deploying the value proposition and messaging into the marketplace to engage, motivate & align to drive optimal revenue and profit.