Price is one of the most obvious ways to impact an organisation\u2019s revenue. Across multiple industries, we see that companies often set prices on a cost-plus basis, allowing their sales teams to discount as they deem necessary to secure sales. Pricing can rapidly become a myriad of poorly understood interconnected decisions, which result in a lack of transparency and negative paradigms: \u201cWe have no control, the market dictates our price\u201d, \u201cCustomers want what they want, we can\u2019t influence this\u201d, \u201cWe need an IT system, that will fix our problems\u201d.<\/span><\/p>\n This is true for commoditised products, however similar paradigms exist in branded or speciality products, where the producer has greater scope to selectively supply and value price.<\/p>\n Our six-step \u2018Pricing Excellence\u2019 approach seeks to reset the reference pricing points, using true cost-to-serve analysis. This provides greater clarity and visibility of the target sales prices and the degree to which current pricing varies around that. We usually find that 25% to 40% of products make no (or a negative) contribution, and typically that 10-20% customers are not profitable.<\/p>\n We help companies to form new pricing structures and deploy these more effectively through sustainable pricing reviews and reinforced, better informed governance forums. We can provide a clear pricing framework for the sales team to work with and a clear process for reviewing and resolving price variances and enhanced profitability.<\/p>\n The six stages of our \u2018Pricing Excellence\u2019 approach involve conducting a pricing and maturity assessment, as well as analysing true product and customer cost-to-serve, and reviewing current profitability of products, customers and materials. As a result of the assessment and analysis, new pricing models, structures, rules and accountabilities are developed. To embed this the pricing process is refined and a cross-functional operating system developed, with actions taken to reduce the price variability.<\/p>\n Our \u2018Pricing Excellence\u2019 approach has been applied across multiple industries, including chemicals, manufacturing, food and plastics, each realising at least 1% of sales increase and 8% of EBITDA benefits.<\/p>\nHow we can help<\/b><\/h2>\n