Strategic Movements July 2023


Tim J. Smith, PhD
Founder and CEO, Wiglaf Pricing

Published July 31, 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.

About The Author

Tim J. Smith, PhD, is the founder and CEO of Wiglaf Pricing, an Adjunct Professor of Marketing and Economics at DePaul University, and the author of Pricing Done Right (Wiley 2016) and Pricing Strategy (Cengage 2012). At Wiglaf Pricing, Tim leads client engagements. Smith’s popular business book, Pricing Done Right: The Pricing Framework Proven Successful by the World’s Most Profitable Companies, was noted by Dennis Stone, CEO of Overhead Door Corp, as "Essential reading… While many books cover the concepts of pricing, Pricing Done Right goes the additional step of applying the concepts in the real world." Tim’s textbook, Pricing Strategy: Setting Price Levels, Managing Price Discounts, & Establishing Price Structures, has been described by independent reviewers as “the most comprehensive pricing strategy book” on the market. As well as serving as the Academic Advisor to the Professional Pricing Society’s Certified Pricing Professional program, Tim is a member of the American Marketing Association and American Physical Society. He holds a BS in Physics and Chemistry from Southern Methodist University, a BA in Mathematics from Southern Methodist University, a PhD in Physical Chemistry from the University of Chicago, and an MBA with high honors in Strategy and Marketing from the University of Chicago GSB.