Intelligent management of price structures and levels is the most important point for securing business success. Correct prices bring more profit, but with incorrect price management, companies risk permanent damage. Excellent pricing goes far beyond setting prices for individual products. It is about strategy, targets, positioning, but also controlling and ultimately all processes and tactics of the company that determine individual prices.
The quantitative analysis of net-net prices should be the start of every pricing project. The effective net-net prices must be made transparent, i.e. the prices after deduction of all customer-related discounts and rebates. To understand the current distribution structure, price structures, margins and revenues must be understood in detail. This requires a detailed survey of relevant revenue components per product, customer and distribution partner:
Price Optimization and Management (POM) software helps companies efficiently manage and optimize prices. More recently, these tools support sales-related decisions, e.g., by providing recommended actions and customer loss alerts. Some vendors focus on back-office price management and product management. Others focus on providing sales reps with real-time sales information. The best tools offer both.
Understanding of initial situation, common definition of goals and methodology. Content Coordination and priorities.
Preparation of the workshop by Digitize!. Moderation by Matthias Kant, follow-up and derivation of the project plan and methodology.
Workshop with all stakeholders: Pricing strategy, correct approach to pricing, hypotheses and expected results, simulation calculation.