I’ve been in the pricing space for two years now, and I can comfortably report that pricing is a cause.   It’s a cause centered on the belief that better pricing can fundamentally and dramatically improve the way companies market and sell their products and services, as well as serve their customers.  And it’s a belief that better pricing makes better companies, and better companies make better employers … and better investments. High-performing companies invest in pricing, and turn it into a strategic advantage.

I’m a believer. And that’s why I am so excited about the incredible boost of visibility the pricing cause received in CIO Magazine. The February cover story says it all:  New Mission for CIOs:  The Art and Science of Pricing.

This feature provides a great example of the extraordinary impact price optimization can have on a business. Waste Management reports generating $218 million through smarter pricing and expects an additional $3-5 billion in the coming years. Just as important, the company pursued a price optimization strategy as a means for fending off commoditization of its services. This is an excellent case of a company that recognized the role pricing could play in solving an important business challenge and then reaped the financial rewards. It’s good for everyone in the pricing industry when a company reveals the truly extraordinary impact that pricing excellence can have on their business.

It’s also important to note that it took underlying technology – in combination with a sound pricing strategy and organizational commitment – to make pricing optimization a reality at Waste Management.  Technology delivered on the promise of pricing.

These data points should get the attention of any CEO, CFO, CMO or CSO looking for the highest yielding growth and profitability initiatives, not to mention those looking for a competitive edge. $218 million in ROI simply cannot be ignored, nor can the use of price optimization as a means to fend off commoditization – or said another way, to realize the true value that a company offers. Name one other technology or organic-growth strategy that can yield a hard-dollar return even close to $218 million in a single year. And I can comfortably say this result from Waste Management is not an anomaly. I know of many companies that have realized returns like these, and even higher.

As a CMO, I have to decide which initiatives to pursue at PROS that will yield the highest return against company goals. So does our CFO, CSO and every other executive. If I were informed about a strategy or technology that could have the magnitude of impact on my business that price optimization did for Waste Management, it would be irresponsible of me not to investigate the possibility of doing the same for my business.

So that’s my challenge to all readers of this blog. I challenge each of you to share with your executive teams this incredible story about Waste Management and see if it moves the discussion about pricing excellence to a C-level imperative … and brings more business leaders into the pricing cause. A world where every company prices smarter means a world where more companies can hire and retain their people, can invest in innovation, and provide a greater return to shareholders. Take the challenge and spread the word!

Thanks!

Tim