Many companies delegate considerable pricing authority, for good reasons. But the more authority is delegated, the less we can assume that actual prices will be what management intended. Price outcomes can be quite variable, and are determined by internal as well as external factors. It's not unusual to see actual transaction prices that vary much more than management expects:
To ensure more consistent prices, with full consideration of various commercial factors, here are a few of the elements we work on:
- Delegation of authority. Senior management is often surprised at how much decision power is actually exercised by individual contributors in front-line selling and customer service positions. Revisiting pricing policies and controls, notably as to discounts and exceptions, is a crucial aspect of what we do.
- The information available to guide your people’s pricing decisions. It’s common that available reports aren’t adequate for tracking and understanding pricing outcomes. Starting with what you most need to know, we work hands-on to collect the right data, analyze it to determine what’s going on, make reports visible and usable, and measure improvement.
- Mindsets and self-limiting beliefs about pricing that you and your people hold. These may stand in the way of collecting for the full value you provide customers.
- Alignment of incentives and recognition with your objectives.
Want additional information about our approach to pricing optimization? Learn more.
For a free, no-obligation consultation with our pricing experts, contact us.