The New World of Global Pricing
As I look back over the 16-year history at Pricing Solutions, I am in awe of how much the business has changed. In the past five years, our business has transformed from being primarily North American- and European-focused to one that is global in scope. The world is a global village now, and our clients are in need of pricing strategies that address their international ambitions. As a result, more than 50% of Pricing Solutions’ work is now devoted to global projects.
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As I look back over the 16-year history of Pricing Solutions, I am in awe of how much the business has changed. In the past five years, our business has transformed from being primarily North American- and European-focused to one that is global in scope. The world is a global village now, and our clients are in need of pricing strategies that address their international ambitions. As a result, more than 50% of Pricing Solutions’ work is now devoted to global projects, such as the following examples.
Case study #1 – B2B
A European company with global operations wanted to apply best practices across the organization. Pricing Solutions has worked with the client over the past three years in more than 30 countries to do just that. By benchmarking the current level of pricing
competency using our “Five Levels of World Class Pricing” methodology and then developing a plan across all of the regions, we helped the client deliver lasting pricing improvements. The estimated impact on the bottom line is several hundred million dollars.
Case study #2 – Luxury Clothing
This iconic luxury brand wanted to assess the effectiveness of its global pricing strategy. With the advent of the Web, the company needed to ensure that it was not pricing at unsustainable gaps between regions. Pricing Solutions benchmarked the practices of other
leading luxury brands and developed a set of best practices. The client implemented these, and has been able to sustain regional price differences that neither leave money on the table nor encourage gray marketing
Case study #3 – Hi-Tech
A world leader in its area, this organization is highly profitable. Each of its regions has been benchmarked on our Five Levels of World Class Pricing. However, the company had a key gap in that it lacked a common language and understanding of pricing
globally. To address this situation, Pricing Solutions and the client have jointly delivered training over the past three years to more than 500 executives worldwide. As a result, the company is moving steadily towards becoming a world-class pricing organization, and has
estimated the benefits at more than $100 million last year alone.
Case study #4 – Packaged Goods
This North American-based multinational wanted to optimize pricing across multiple countries in emerging markets. A multi-country pricing elasticity study conducted for key emerging markets (China, India, Thailand, Malaysia, Brazil, Mexico, Russia) led to the
identification of opportunities to rebalance the pricing of the product line. To leverage that research, Pricing Solutions has built a model that uses the results to predict the elasticities of other countries that share similar characteristics.
Case study #5 – Medical Devices
This international organization is constantly developing new products that are intended to penetrate emerging markets without cannibalizing developed markets (North America, Europe). Pricing Solutions is conducting a global pricing research study focused on new devices that optimize the tradeoff between product attributes and price. This is an exciting initiative that has global implications for product-development practices for the business.
Case study #6 – Machinery & Equipment
This client recently launched a global pricing department whose mandate is to help the company become a world-class pricing organization. Pricing Solutions’ Five Levels of World Class Pricing is a key component of the journey.
If you are involved in global pricing, perhaps we can help. The challenges and the opportunities of globalization are enormous – and Pricing Solutions is working with clients every step of the way to ensure that they thrive!
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