You’ve most likely seen the commercials asking consumers, “What’s in your wallet?” Yet, from a business perspective, finding out what you have in your wallet isn’t nearly as important as finding out what you’re missing. That missing link is known as wallet share; and understanding what’s NOT in your wallet can lead to tremendous opportunities in terms of your business’ ability to generate profitable growth.
The Federal Open Market Committee released their most recent inflation forecast for 2017 and beyond. And while inflation remains historically low, it’s also on the rise, with 1.9% projected in 2017 and 2% for 2018. We have already seen raw material inflation edging up the costs of metal, rubber and other industrial commodities. To quote a recent Bloomberg article, these prices have been “on a tear” since the second half of 2016.
When you run a business, talk of inflation typically translates into fear and angst. Here’s how we suggest you prepare for what’s coming…
Getting to the "right" price for your customer can be difficult and time consuming. How do you know you are pricing correctly? How do you create consistency across your organization? And more importantly, how do you maximize your profitability without losing business?
Navigating your way through these challenges usually requires taking a step back to level-set your current processes. So, where do you start?
Striking the right balance between effective pricing strategies and company performance is often an issue because there are so many factors involved. With price being the most important lever impacting your bottom line, one major pricing mistake could risk your company’s profit potential.
How good are your BI tools at explaining your data?
A BI tool might report you lost half a point of margin last month or gained two points in revenue, but what’s driving those changes often remains a mystery.
If you’re ready to unleash the power of your data, a pricing business application like Profit Builder can be the solution you need.
Check out the video below to learn more about how Profit Builder works:
When there’s a pricing problem at your company, you know it. Still, you struggle to pinpoint what, exactly, the problem is—and how to fix it.
One critical step towards gaining visibility into your pricing issues is something we like to call “price-down reporting.” In this article, we’ll talk about what that term means, and how to use it to your advantage.
While common, overrides can be dangerous. They train your sales team and customers that price is negotiable and interfere with one of your primary goals: sticking to your pricing strategy.
If that doesn’t worry you, consider this: companies that grant high numbers of ad hoc price exceptions are more likely to experience price erosion across all customers.
An effective and mature pricing strategy includes a policy for establishing price overrides. But what would such a policy look like?
In many cases, we see sales teams compensated based on the volume they bring in without much focus on pricing. Contrastly, pricing teams are compensated based on improved margins. This creates a natural tension.
So how can your organization improve alignment between pricing and sales teams to ensure business goals are met? Lots of our clients have had similar concerns, so here, we answer frequently asked questions to bring your pricing and sales teams together working toward improved profits and overall success.
This post was originally published on PricingBrew.
It may seem counter-intuitive to bring in an outside pricing partner when you already possess expertise in-house. However, with benefits ranging from access to leading pricing technology to insights into cross-industry best practices, the right pricing partner can help even experts magnify the impact they are able to make.
Strategic mergers and acquisitions can drive impressive growth. All too often, though, growing pains can get in the way of reaping the full benefits of the synergistic new organization. Poor data clarity is a common challenge, as two organizations struggle to blend their various ERP and other business intelligence systems into a unified structure.
From a pricing perspective, this lack of visibility raises serious concerns. A pricing manager’s overarching goal is to understand the new product mix in order to keep growing the already-strong business while improving weaker accounts. However, when data is stuck in siloes, it becomes difficult to identify all of the opportunities for economies of scale the merger or acquisition was intended to produce.
Fortunately, there are steps you can take to quickly consolidate your data into a single, cohesive view. These actionable insights will in turn empower you to drive strategic pricing improvements and move more customers to more profitable product lines, across the new organization for better price visibility.