Price is a factor in buying decisions. Whether you’re quoting, responding to RFPs, implementing an annual price increase or configuring a make-to-order product, price is going to play a role in whether or not you win or keep the business. Is your pricing competitive? The B2B landscape makes this difficult to answer. A small subset…
Is your CEO correct in the assessment that your pricing is too complex? In short, the answer is “probably not.” In fact, the longer answer has to do more with your markets than how you execute pricing. We’ve picked up on a running theme inside many B2B organizations: Executives are crying out for simplicity. Have…
I am fascinated by the complexity of B2B pricing and the rich lexicon people use to describe it. Take a look at the following list of some common terms we hear describing how B2B companies price: tender, ship and debit, rate sheet, bid, rebate, reimbursement, deal, price book, bundle pricing, agreement pricing, temporary price reduction,…
Warren Buffett: If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business and if you have to have a prayer session before raising the price by 10 percent, then you’ve got a terrible business.
If you knew each of your customer’s precise “Willingness to Pay” (WTP) for each product, you could simply charge that price. The result would likely be a huge increase in your profit and market share…and maybe a bonus for you.
I am not very good at poker. My friends say I have more “tells” than they can count. A tell in poker, is a facial expression or body position that gives away what kind of hand you have – a bad one, a good one and sometimes a really good one. The best poker players…
The other day, I had a very interesting conversation with one of our customers. They just completed a customer survey to help determine the core reasons their customers valued them as a supplier. Many items were listed – service level, relationships, ease of procurement, technology, price, market leadership, quality and much more. Price didn’t make…
Pricing science is often an over-used term. True pricing science is the use of fundamental scientific methodologies and logic that help companies attain remarkable returns on their investment. These algorithms are cutting edge, but still rely on fundamental principles that can be traced back through history. In 1906, Sir Francis Galton (widely known for his…
John Salch recently posted a great blog about removing the boundaries of technology – allowing your sales force to use tools they are already comfortable with, yet still providing key information to make great pricing decisions. One of the most important pieces of information you can provide is knowledge about a specific customer, the product…
Jacqueline Davis says:
Hi Siva,
Thanks! I couldn’t agree with you more on the...
Jacqueline Davis says:
Hi Rikhath,
The question of why your company needs a pricing team...
Siva Ram Yellapragada says:
Simply awesome !!
We have a strong pricing team in our global...
Rikhath says:
Also in enterprise products world do you think Product operations would...
Rikhath says:
Hi Jacqueline,
We fighting the same battle and I out...
