106 Articles found for subject: Pricing

Using price analytics could help companies in many industries do a better job of understanding the profitability of specific products and services. One cornerstone is ensuring the transparency of all associated costs. Price analytics also addresses areas such as organizational structure, business processes, customer segments and product characteristics.

Content: Article | Authors: David A. J. Axson, Kurt Rosander | Source: Accenture | Subjects: Finance, Management, Pricing

Diverse offerings make it tougher than ever to associate prices with a product’s or service’s underlying costs. Developing pricing arrangements for specific customers or customer groups also is increasingly difficult. One possible solution is a fully allocated price and cost waterfall.

Content: Article | Authors: Anthony Milani, Hyun Suk Oh, Ray Florio, Tiago L. Salvador | Source: Accenture | Subject: Pricing

If you’re not exactly sure which pricing strategy will work for your business, these 6 steps can help you successfully set your company’s prices.

Content: Article | Author: Dileep Rao | Source: OPEN Forum (American Express) | Subject: Pricing

Conventional management wisdom suggests that price should reflect value. But what is the value that prices should reflect? And just whose perception of value should determine price? As these questions and the answers to them suggest, pricing is no longer only an economic challenge. As this author suggests, pricing today is also a marketing challenge, and in this article he describes how managers should deal … [ Read more ]

Content: Article | Author: Tim J. Smith | Source: Ivey Business Journal | Subject: Pricing

Business executives involved in mergers or acquisitions face a full plate of prickly issues, from early due diligence to negotiating deal terms to organizational integration, including who ends up in the C-suite. However, one thing they typically don’t pay enough attention to is pricing strategy.

Content: Article | Authors: Jessica Fleming Kosmowski, Patricio Simpson | Source: Business Finance Magazine | Subjects: Mergers & Acquisitions, Pricing

The first task is to map benefits versus price—as the customer sees them. Bear in mind that equal value doesn’t mean equal market share. The key decision: do you stay on the line of value equivalence, or get off?

Content: Article | Authors: Michael V. Marn, Ralf Leszinski | Source: McKinsey Quarterly | Subject: Pricing

Prices tend to be seen as markers for individual transactions. In fact, the total realized price for many products and services takes into account the full set of related transactions that occur before, during and after the sale. It represents a window of opportunity that opens earlier, and stays open longer, than companies often realize.

Content: Article | Authors: John Hanson, Paul F. Nunes | Source: Outlook Journal (Accenture) | Subject: Pricing

When most managers think about pricing, they harken back to their days of Economics 101: a rote downward sloping demand curve and an asterisked point labeled “perfect price.” At this optimal price, elasticity is such that it does not make sense to raise price (because the extra per unit profit is overshadowed by lost sales) nor discount (because increased sales don’t compensate for lower profit … [ Read more ]

Content: Article | Author: Rafi Mohammed | Source: Harvard Business Review | Subject: Pricing

Because management is not an exact science, several approaches that appear obvious turn out to have little value. In a book published this year—and particularly in a chapter devoted to pricing and competition—Kellogg School of Management professors Rakesh Vohra and Lakshman Krishnamurthi outline why many preconceived ideas can be wrong.

Content: Article | Source: Kellogg Insight | Subject: Pricing

How do you find out how much your customers will pay? It’s simple: Ask them. Of course, you can’t ask customers directly how much they are willing to pay — they’ll likely shade the truth (by giving a lower price) to their benefit. That said, there are a variety of ways to better understand how your customers think about your price. In my work, I … [ Read more ]

Content: Article | Author: Rafi Mohammed | Source: Harvard Business Review | Subject: Pricing

Pricing is critical, and short-changing your pricing strategy is the fastest way to leave cash on the table—money that will be lost forever and never recovered.

So after that initial spark of innovation and the completion of the design, development and marketing phases that follow, don’t screw up the process by treating price as an afterthought. Have you spent as much time and resources on price … [ Read more ]

Content: Article | Author: Patrick Lefler | Source: ChangeThis | Subject: Pricing

Monitor recently conducted a benchmarking study of more than 200 companies. The study sought to measure the impact of pricing strategy and pricing execution on profitability and revenue growth. The results provide compelling evidence that the ability to manage pricing strategically can be a source of competitive advantage that drives superior financial performance.

Content: Article | Author: John Hogan | Source: Monitor Group | Subject: Pricing

Gregory Unruh introduces a passage about the price of critical resources from The Price of Everything: Solving the Mystery of Why We Pay What We Do, by Eduardo Porter.

Content: Article | Source: strategy+business | Subject: Pricing

With so much money at stake, it’s hard to understand why so many companies neglect pricing, leave it to the sales force, or rely on lower level analysts instead of moving it onto the CEO’s agenda. If your company’s view of pricing isn’t high-level and cross-functional, we believe it’s wrong.

Our research has consistently shown that pricing has up to four times more impact on profitability … [ Read more ]

Content: Article | Source: Deloitte | Subject: Pricing

What if you could use the Web to return to the old-world traditional markets where merchants sized up every customer and quoted an exclusive price to each one? You can. Rather than eliminating sophisticated pricing strategies, the Internet actually empowers them.

Content: Article | Authors: Laurent Guerard, Rasvan Dirlea, Stephane Remy | Source: Kearney | Subject: Pricing

Actively pricing products across their life cycle is increasingly important, particularly in innovation-intensive industries. Failing to do so may forego potential profits or even destroy value.

Content: Article | Authors: Craig C. Zawada, Michael V. Marn, Walter L. Baker | Source: McKinsey Quarterly | Subject: Pricing

Many companies have a significant opportunity to improve their top- and bottom-line growth by improving their processes and execution on pricing. As these authors point out, senior management teams must summon the analytical skills and courage to confront their reluctance about changing prices and align their pricing more closely with the value of their products or services.

Content: Article | Authors: Graeme K. Deans, Satoshi Watanabe | Source: Ivey Business Journal | Subject: Pricing

CEOs are often the last defense against unrestrained discounting that degrades margins and destroys value.

Content: Article | Author: John Kador | Source: Chief Executive | Subject: Pricing

Seth Levine offers some ideas on pricing models.

Content: Article | Author: Seth Levine | Subject: Pricing

It’s said that timing is everything, and that rule certainly applies to pricing. An often overlooked factor in driving purchase decisions, timing can be applied to nearly every pricing approach. In this white paper, the authors describe a variety of options: from stretching out the elements of a purchase decision to bringing them closer together, from changing prices dynamically over time to setting time limits … [ Read more ]

Content: Article | Authors: Gus Antorcha, Just Schürmann | Source: Boston Consulting Group (BCG) | Subject: Pricing