Archives posted in: Pricing
In this article, we look at how I have often seen pricing improvements measured and why I have some serious reservations with this common metric. I do this in the hopes of generating responses on how you accurately measured the effectiveness of pricing at your company.
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Pricing is not only numbers, but strongly psychological and emotional. Certain norms emerge that dictate how products and services are sold in different industries. Customers come to expect those norms, whether or not they are necessarily the most economically efficient.
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Product managers undoubtedly can be held accountable for the profitability of their portfolio. It is reasonably possible to make portfolio profitability a key performance indicator of a product manager. And it reasonable to make this part of their compensation package, thus holding them not only accountable but impacting their own economic condition based on the quality of the decisions they make.
More Assigning a list price is an arduous task—we want to make sure we get it just right to ensure good margins and profitability. But are we underestimating the importance of one key question? Who is(are) my end user(s) and how are they using my product? If you can think of various answers you may have various customer segments.
More There are two basic approaches businesses take to managing commercial policy. For most, the default approach is tactical decision making. For some, they take the leap and add strategic decision-making.
More These systems typically flow into order management systems and are sometimes built on top of them, or contained within them but often they are stand-alone and talk to the order management system through some standard interface (API). The industry term is CPQ (Configure-Price-Quote), also called pricing or quoting engines.
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Wendy’s achieved another quarter of same store sales growth. Was it their sassy social media campaign that reminds detractors of the existence of refrigerators? Was it their new menu items? Or was it the fast food chain’s competitive pricing? Of the three, I think it was their social media campaign that propelled otherwise strong product and pricing strategy to outperform.
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Because the exchange value approach examines the focal product against its next nearest competitor from the viewpoint of a specific market segment, it creates a focused picture of how an offering is likely to be evaluated by that specific segment. If more segments and competitors are to be considered, more models of the Exchange Value to Customer are needed. This leads to better and more accurate pricing on a segment-by-segment basis.
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“Strategy consultant” is a job title that is can mean everything and nothing. It’s no surprise that people have trouble understanding what skills are necessary for a strategy consultant, let alone what the role even normally entails.
More Negotiations are no different, although not as dramatic and not as much a matter of life or death. Not surprisingly, on occasion, they devolve into a hypercompetitive, personality-driven blood sport
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