Posts by: Tim J. Smith, PhD
Let me get this right: Grainger’s “pricing action” was to lower prices. The result was higher volumes and lower gross profits. The aim was a clear market share take. And CEO Donald Macpherson is happy with the result?
MoreCan both product managers and salespeople have their incentives and key performance indicators aligned to the corporate goal: profits? Yes. They can…
MoreNotice that the solution many companies have taken results in sales and product management being unaligned. Sales focuses on their individual account needs while product managers focus on creating solutions to address challenges, which may be faced by multiple customer segments.
MoreWhat can sales managers do to reduce the risk of account loss? According to their research, putting top salespeople on the account doesn’t do the trick at all. Rather, putting a person familiar with the account’s industry on it, even if their past sales performance is average or even below average, can almost eliminate the risk of account loss.
MoreTreating pricing as a verb, not a noun, applies pressure to the management of pricing decision making. But who makes pricing decisions? …
MoreCEO’s are responsible for organizing productive operations, and ultimately generating revenue. When it comes to their pricing responsibility, CEO’s manage pricing decisions by defining the culture, structure, and routines necessary for producing sound decisions that align with their strategy.
MoreDismal earnings have been reported at Macy’s, JC Penney, Kohl’s, Barnes & Noble, Sears, and many other retailers—countered by increase sales at Amazon.com. Even Walmart is investing in online capabilities, begging the question will all physical retail fail? No.
MoreSo what do executives get wrong about pricing? They treat it as a noun not as a verb. Treating price as a verb drives executives to define the culture, organizational structure, and process for making pricing decisions. Leading firms do this. Failing firms don’t. Executives, you have a choice.
More“Discounting becomes a drug that is hard to get off, and creates this basis for consumer to not trust regular prices,” Uri Minkoff.
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