So 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.

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Not that I can or am stating that everything Sony did was perfect. And I am definitely not stating that everyone will find Sony’s design tradeoffs to result in a good offering. But they did define their target market and product design requirements in such a manner broadly appearing to be compatible with a highly successful product, launch.

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Pricing Done Right provides a roadmap for improving pricing practices within any market-oriented firm. It provides a framework for managing pricing decisions in any organization. It clarifies the best practices for defining the organizational culture, architectural hierarchy, and routines for getting pricing done right.

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Adrienne Hartman, Director of Ecommerce & Customer Insights at J.J. Keller & Associates talked about how B2B Ecommerce cannot be solved only by software alone. (I agree with her) She also talked about using Google Manufacturing Center. She encourages you to ask, “How well can buyers use your site?” It is clear that her words come from an employee of an organization with a strong culture.

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I have noticed one car company breaking the rules of engagement at the Chicago Auto Show the past two years. Kia Motors America, Inc. has public relations people on hand like every car company at the show. They also had product mangement exectutives like Vice President, Product Planning Orth Hedrick and Manager, Long Range Strategy Steve Kosowski onsite. They stayed onsite for both press days – interacting with people and taking product feedback.

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In the price improvement strategy, firms develop the organizational capabilities to manage prices better. Pricing and discount management processes are developed. People are hired to drive those processes. Tools are acquired to accelerate achievements. Cultures are changed towards a profit and discount cautious mentality.

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When every opportunity is studied using Economic Value Models and priced totally based on the value delivered (and agreed upon with customer), we are heading towards a situation of easier wins leading to eventual revenue growth and market share increase.

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GE has long been known as a process firm, but what processes do they use when it comes to pricing? What do pricing initiatives look like at GE Oil & Gas Subsea Systems? Who contributes to those pricing decisions? How does the pricing function fit within the larger organization? What pricing decisions does the pricing function directly engage? What techniques and tools have been found useful for pricing at GE Oil & Gas Subsea Systems? And are there any external resources that they have found particularly useful?

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The banking services sector is one of the most profitable sectors out there. It is not uncommon to earn an ROE of anywhere between 40%-60%. And as we all know, a 1% increase in price can lead to an 8% increase in profits.

So how do we ensure we get the most profits out of banking services? Are there any secrets? I spent 28 years of my life in the banking services sector and here is what I learnt.

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