World Class Pricing TM
World Class PricingTM is the pursuit of excellence in the execution of the pricing process. The essence of World Class Pricing TM is the establishment of the management system our clients need to ensure their offerings are optimally priced every day. An effective pricing process gives them the confidence of knowing that their team is consistently making sound pricing decisions. It is impossible to maximize profit without optimizing pricing, and it is impossible to make the transition without linking the changes to processes, tools, technology, and company culture.
5 Levels of World Class Pricing Excellence
An effective World Class Pricing process:
- Is value based
- Considers customers, competitors, and costs
- Is fair and equitable to all customers
- Is efficient to execute
- Has measurable outcomes
- Is repeatable
- Delineates accountabilities
- Links to other business processes
- Maximizes profit.
The majority of companies are operating at Levels 1-3. Based on our project work, Pricing Solutions has found that a 10:1 payback is typically achieved on projects that move an organization up a level. This payback is usually realized within 12-24 months, and continues to deliver as the company reaps the rewards of superior pricing.