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Pricing Power is one of the key value drivers for your company.  Higher pricing maturity leads to sustainable value capturing which results in profit optimization based on fair pricing and value sharing principles.   

Developing your pricing maturity takes time and requires efforts, but is very rewarding.   And yes, there is a proven path towards pricing excellence !  It's important to do the right thing right - at the right moment.   This Thougth Leadership Paper gives you a concrete step-by-step approach to lead you to pricing excellence.

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Developing your organisational pricing maturity needs a change roadmap 

Companies that begin the journey towards higher pricing maturity need to understand that it needs a change process and roadmap.

Doing the right things at the right moment is crucial.  Priority setting is important and depends on your current pricing maturity level. Incorrectly identifying your pricing maturity level can lead to poor Pricing team performances and a loss of faith in the Pricing function. 

The thrill and danger of the quick wins

Companies’ first pricing focus is to get a grip on transactional control resulting in vital margin improvement projects.  These are the ‘quick wins’ to get management support.   It’s great, but if they stop their efforts there, they will have a limited effect in time and value. 

Crossing the chasm

Crossing this “pricing chasm” requires extensive change management skills from the Pricing team manager(s). But companies who have followed the pricing maturity path can confirm its effectiveness. (see CPM alumni for success stories)

What it takes

Going beyond pricing projects, taking the next step towards full value capturing (level 3), and embedding the role of pricing in the commercial organization requires an alignment of organizational maturity development between pricing, marketing, sales and finance. 

“Continuous training, coaching, aligning and change management are important drivers to reach the next level of pricing maturity”. Wim Beirens, Director Strategic Pricing, Bridgestone.

The impact

The whole organization is now focussed and aligned around a profit culture, focused on value creation, value communication and value capturing.

Going through the pricing maturity development process leads to a wide recognition in the organization that Pricing is one of the key profit drivers and that everyone can and has to contribute.

Increasing your organizational pricing maturity results in improved profitability and market (brand) positioning.

 The EPP Pricing Maturity Model is a practical, proven, roadmap for developing your organizational pricing maturity. It helps you to reflect, reframe and refocus your efforts at every stage in your pricing maturity journey. 

Want more info ?  www.pricingplatform.eu 

Crossing the Pricing Chasm