PRICING SERVICES
"The single-most important decision in evaluating a business is Pricing Power."
Warren Buffet
As an Operational Pricing freelancer, I optimize your tactics, profitability and save you time.
Tactical or operational pricing is the direct execution of the pricing strategy. It often takes the form of one-off assignments, project support or direct execution of decisions. It is not necessary to change your prices daily. Indeed, this could be poorly accepted by the market, however your price lists must be monitored throughout the year in order to remain consistent.
The missions of the pricing consultant
Once the strategy is defined, the tactical pricing consultant implements the recommendations in the
construction of the price lists. It is also possible to implement tactics within your different portfolios
or your customer approach. We tend to think of price as the amount we pay for a good/service, but
it's much more complex! Between the base price, the discount, the competition, the bundled price or
the maturity of the product in its life cycle, the positioning and the perception... a public price or a
negotiated price takes into account a lot of factors. It is therefore important to surround yourself
with experts.
Here are some examples of missions that I can carry out for your company (non-exhaustive list):
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- Update of your price lists
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- Segmentation of your offer
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- Maintenance of your competitive base
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- Developing pricing tactics and consistency rules
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- NET pricing study (direct client negotiation) with scenarios
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- Calculate the impact of recommended changes
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- Collaboration with the sales team for storytelling
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- Consistency between products and pricing grids
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- Orientation to a pricing tool for your business
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- Implementation of a dashboard for your KPIs (performance indicators)
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- Sales performance analysis, sales segmentation
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- Decision making support
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- Data cleaning / mining
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- Updates of your Price Lists
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- Standardization of your tools
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- Implementation of a dashboard
A surplus of activity? Call on an external consultant!
Sometimes your company has to face a surplus of activity when your company evolves or when you have not yet found the ideal profile for your pricing department. It is interesting to call upon a service provider, an expert who will come to support you during a specific or regular mission.
Data or how to anticipate your future
Data is all your internal data (customers, products, sales...), but also the external data of your market (studies, benchmarks...). This data is a gold mine often untapped by companies. Within the framework of an operational pricing mission, it is necessary to exploit them.
The most commonly used data are :
- Your sales figures per year, per distribution channel...
- Your costs
- Your sales volumes
- Type of customer
- Distribution channels
- Multiple segments (market positioning, techniques, volumes)
- Highly competitive products, captive products...
- Sales distribution according to defined regions
- Product maturity in its life cycle
Database cleansing
Your data is your best source of analysis. For a good pricing practice, it is necessary to have usable, functional and clean databases. When this is not the case, it is imperative to do a first work of treatment, cleaning and structuring. It is also necessary to set up rules of good practice, so that any decision based on data is extremely reliable and profitable quickly and in a durable way.
Why use an external consultant?
Choosing a consultant is a considerable advantage, because he is an expert in his field and has an outside view of your company. He will allow you to apply the theory to the real world. A pricing redesign is often an immediate or short-term return on investment.
The effects of pricing on your sales
Some figures
+ 15,6%
By increasing cross-selling.
+ 6,5%
By improving price consistency with the market or between products
+ 2.4%
Through improved price responsiveness
+ 2 %
By managing a pricing project
*Source : 2020 Global B2B industry benchmark report, Zilliant