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    Pricing Strategy Should Be A Competitive Advantage - Not A Weakness

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    swaraj_gupta_2
    The document discusses some key issues companies face with pricing strategy. It notes that few companies have a clearly defined pricing strategy and try to be everything to everyone. It also states that analytics capabilities are underdeveloped, resulting in average pricing that cannot develop customer-specific offerings. The document poses five questions for companies to reflect on their pricing structure and how it relates to business strategy, understanding of pricing impacts, efficiency of billing practices, and focus on pricing strategy capabilities.

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    Pricing Strategy Should Be A Competitive Advantage - Not A Weakness

    Uploaded by

    swaraj_gupta_2
    5 views2 pages
    The document discusses some key issues companies face with pricing strategy. It notes that few companies have a clearly defined pricing strategy and try to be everything to everyone. It also states that analytics capabilities are underdeveloped, resulting in average pricing that cannot develop customer-specific offerings. The document poses five questions for companies to reflect on their pricing structure and how it relates to business strategy, understanding of pricing impacts, efficiency of billing practices, and focus on pricing strategy capabilities.

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    Pricing Strategy Consulting Case Economic growth

    Original Title

    PriceToPay_

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    The document discusses some key issues companies face with pricing strategy. It notes that few companies have a clearly defined pricing strategy and try to be everything to everyone. It also states that analytics capabilities are underdeveloped, resulting in average pricing that cannot develop customer-specific offerings. The document poses five questions for companies to reflect on their pricing structure and how it relates to business strategy, understanding of pricing impacts, efficiency of billing practices, and focus on pricing strategy capabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    5 views2 pages

    Pricing Strategy Should Be A Competitive Advantage - Not A Weakness

    Uploaded by

    swaraj_gupta_2
    The document discusses some key issues companies face with pricing strategy. It notes that few companies have a clearly defined pricing strategy and try to be everything to everyone. It also states that analytics capabilities are underdeveloped, resulting in average pricing that cannot develop customer-specific offerings. The document poses five questions for companies to reflect on their pricing structure and how it relates to business strategy, understanding of pricing impacts, efficiency of billing practices, and focus on pricing strategy capabilities.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
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    However, The Consequences Of Getting It Wrong Can Be Disastrous

    Pricing Strategy Should Be A Competitive Advantage Not A Weakness There is a general lack of appreciation of the real elasticity of demand and scale economics Few companies have a clearly defined pricing strategy; many try to be everything to everyone Analytics capabilities are woefully underdeveloped resulting in average pricing and an inability to develop customer specific offerings
    New pricing plan announced

    Netflix stock performance on the NASDAQ

    Sub-optimal price administration results in sizeable leakages - companies are often unaware of how much is lost through poor billing practices Price structures are rigid and tend to follow the market providing no competitive leverage whatsoever

    Five Questions: A Moment of Introspection

    1 2

    How is our pricing structure linked to our business strategy? Are we a premium player, a price warrior, or a company stuck in the middle?

    Do we truly understand the potential impact of pricing on our business economics? Do we know what a shift in pricing would mean in terms of volumes and consequently cost structures? Are we fully capturing the pricing opportunities available to us? How does our pricing structure compare when benchmarked with the competition?

    3 4 5

    How efficient are our billing practices? Do we know if we are losing profits because of front-end leakages?

    How much time do we spend discussing our pricing strategy and structure? Do we have the capabilities and bandwidth to truly leverage the power of pricing?

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