Is your pricing under pressure?

With revenues falling away like an avalanche, many businesses are facing intense pricing pressures or simply dropping their prices willingly to keep current accounts.

Strategic pricing is a better way. Strategic pricing involves clearly understanding:

• The market dynamics affecting your products such as the degree of commoditization and degree of pricing transparency,
• The availability of add on value-added services,
• Customer segmentation pricing opportunities,
• Individual customer willingness to pay, and
• Negotiation tactics.

Left to their own devices, sales reps often:

• Price based on gut feel,
• Fail to use available data, or
• Use price to solve customer service problems

The goal of strategic pricing is the development of a rational, structured approach to pricing decisions which is based on analysis and research and orchestrated through pricing guidance, tools, process and management oversight.

Poor pricing process is money left on the table.