Strategic Movements July 2023

Since November of 2022, we have been crafting Pricing Spineometers using a repeatable set of metrics.  (Prior to that date, the Pricing Spineometers were more exploratory in nature.)  This exercise was undertaken to identify the impact of pricing capability on corporate performance, if any.  Specifically, the hypothesis was that pricing is important to profits, profits drive market capitalization, and CEOs are rewarded for improving corporate market valuations, therefore pricing should be important to CEOs.  Based on a limited number of measurements, we did indeed find that a Pricing Spineometer measurement was correlated with corporate market capitalization.

Companies with 5 of 5 vertebrae in their Pricing Spineometer achieved 62% greater market capitalization over the past five years than those with 1 of 5 vertebrae.

This correlation indicates that investments in pricing capability do indeed positively impact corporate performance. But, is corporate performance important to CEOs?

The Pricing Spineometer readings reveal that not every CEO seems to have gotten the message.  Perhaps a few more readings are needed.

This month we look at Charles River Laboratories, Generac, DXC Technology, and WestRock.  While wildly different in markets served, cost structures, and risk exposure, they all merit sizable investments in pricing.

What will you gain from their Pricing Spineometer™ case studies?

Chart your path to 5 of 5 vertebrae in your Pricing Spineometer and improve your profits with Wiglaf Pricing. Includes competitive benchmarks, a 67-point corporate inspection, and a three-year pricing improvement roadmap.