Over the past few years, you have often heard me mention the concept of mindfulness. I purposefully use this word in the context of an emerging theory on organizational mindfulness that is researched more and more in organizations. I actually conducted a research inquiry on the topic, and I hope to continue the exploration on…
The approach to providing pricing guidance to sales teams has been widely discussed and adopted. In the end, it makes a lot of sense to provide floor, target and expert pricing guidance, which gives salespeople far great confidence to negotiate. By contrast, the alternative – providing no guidance at all – requires that they rely…
A recent survey conducted with 557 CEOs and business owners around the world showed they pay little attention to pricing. When asked how they would allocate 100 points of attention between cost cutting, growth programs and pricing initiatives, pricing received an underwhelming average of 16 points. A vast majority of their time is spent on…
Value modeling is a science that cannot be improvised. Critical business decisions, from product development, through marketing to pricing and sales, are based on value models. Consequently, many people need to apply the proper techniques, steps and value assessment methods to support these important decisions. There is no other way around this! The key question…
The concept of variant, or component, pricing is familiar to a lot of manufacturers these days, thanks to Dell. That’s because Dell introduced the concept of variant pricing through its model for customizing the purchase of a personal computer.
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.
Understanding the value you provide to your customers is always important when you set prices, but it is even more crucial in commodity product industries. Take this example of a European chemical manufacturer: A large customer continued to pressure a sales rep of a chemical commodity products manufacturer for lower prices on a specific product…
Manufacturing.net and PROS’ Doug Fuehne, VP, Professional Services of PROS Pricing Software Solutions talk about how manufacturers can improve their pricing strategies and come out ahead as the economy turns around. To get right to it, the five pricing strategies Fuehne suggests will help you come out ahead in the economic recovery: Identify underperformers. Proactively…
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…
In one of our latest implementations, we had a scenario where we were getting lower than expected sales adoption of the optimized price guidance in one division of our large distribution customer. Initially when we were trying to determine potential causes, all seemed OK – this division had followed the same change management plan, same training…
Steve Sassi says:
A great way to understand the value you're delivering to your...
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...
