This week, we look at an executional pricing issue: when your company goes off script and offers pricing allowances and discounts to customers without discipline. Most companies don’t have a defined process for strategically deciding if and when to lower price.
The end result is often that the “squeakier” customers — rather than the high potential ones — get lower prices. When this happens, all the hard work that was put into developing an overall pricing strategy is lost.
The team discusses how to bring tools and discipline to effectively enable a smooth transition from a strategic price to an executional “pocket price” in day-to-day pricing activities. This results in the maximization of margins, and leads to greater alignment of sales and marketing teams.
In this episode you will learn:
• Key pricing terms like “the leaky pipe” and the pricing waterfall
• The executional pricing mistakes that many firms make
• Executional pricing tools that help plug the leaky pipe and shore up pricing discipline
Here are some quotes from the team’s discussion:
“Pricing is a manageable process that most businesses aren’t managing”
“Pricing concessions and discounts are hidden in all kinds of ‘corners’ in a company”
“Executional pricing is the sharp stick strategic execution”
We hope you enjoy the discussion and gain some helpful insights!