Our friends over at PriceBeam recently posted this article about how to improve international product launches through pricing:
Revenue Growth and Revenue Control go hand-in hand. In organizations with many customers, products, price points, discount types or rebates, it is key to keep the net revenue under control. Net revenue being defined as Quantity * (Gross Price minus all discounts minus all off-invoice rebates minus all other monies flowing to the customer). If the company manages gross prices / list prices, but let's sales teams discount arbitrarily, then net revenue tends to tumble as discounts grow.
This is the time of year when many companies are planning or executing price increases for the new year. Some are successful and reap considerable improvements in profitability. Others have difficulty in making the price increase stick. And others simply fail to implement a price increase.
Over many years working in the pricing industry, I have seen a number of things that successful companies do when it comes to implementing the price increases. Here are some of those insights.
Together with our partners over at PriceBeam, we are holding an exciting webinar in 2 weeks time about how to use willingness-to-pay insights in the decision making process for marketing investments.
It can be. But, as with most things in business, it depends. In this example below from an e-commerce company, cost makes up the starting point.
Pricing Simulation for sales people can be highly useful in many situations. It can help assess price increases, or simulate different profitability outcomes when applying different assumptions. It can also be useful when e.g. merging companies to see what different scenarios play out well for the merged company versus the customer.
In Mergers & Acquisitions it is common that several sales organizations are merged. The result is that people often need to sell new products or services, and that they need to negotiate prices and deliver value arguments that they are not familiar with. Here are 5 areas that can determine whether the pricing side of a M&A implementation is successful or not:
Our partners over at RevBeam wrote a great blog post today about how to make pricing the hero of an acquisition:
In some industries, if not most, prices have historically only been changed infrequently, but the emergence of Dynamic Pricing and the benefits it brings to sellers is changing that. Dynamic Pricing in itself is simply to update prices (more) frequently based on an underlying pricing model, in order to optimize prices in accordance with demand, competition, market conditions, customer willingness-to-pay and more.