There are two aspects to a successful formulation and implementation of pricing and go-to-market strategy:

  • Standard Pricing. This includes the formulation of the pricing strategy and tactics, setting list prices, discounting guidelines, etc.
  • Deal Pricing. No matter how well prices are set in the back office, if in the field the sales team is not well equipped to deal with price pressures at the negotiating table, all bets are off.

The Three Pillars of Pricing

  • Many companies use cost-plus pricing, adding to their costs a “reasonable” margin; however, if fixed vs. variable costs, sales volume and market conditions are not considered, this simple methodology can backfire.
  • Fewer businesses take into account market data – which, while important for pricing, if used without discernment and a clear strategy it may not lead to profitable growth.
  • Even fewer companies quantify the value they deliver to their customers through value-based prices.
  • And an extremely small number are good at doing all three.

We can help you be in the latter category, maximizing your revenues and profits.

To learn more, visit the links in the upper-right section under the Price Setting Process.