Pricing consulting
A small change in price has a large effect on profit. Yet in many companies, prices are set by habit. We help you set the right price, find where margin is lost, move prices when they need to move, and make someone responsible for them.
Are your prices based on cost plus a margin, with similar customers paying very different prices?
We set your prices from the value the customer receives, not from your costs. This is value-based pricing. We then define a price range for each product and each customer type: a floor, a target and a ceiling. Step by step, we bring unjustified gaps back inside these ranges.
Consistent prices that reflect value, and clear limits for your sales teams.
Do you price your tenders by instinct?
We give you a method to price each bid, based on your chances of winning and the margin you need. You know when to go lower, when to hold your price, and when to decline.
More tenders won, at a price worth winning.
Do your prices differ from one country to another, and do customers take advantage of it?
We align your prices across countries so that customers cannot simply buy where it is cheapest. The differences that remain are justified and controlled.
One coherent price position across your markets.
Is there a large gap between your list price and what you actually collect?
We trace everything that comes between the list price and the price you really receive: discounts, rebates, free services, fees, cost to serve. We do it product by product and customer by customer. You see where margin is lost, and which customers are not profitable.
A clear picture of your margin leaks, with figures.
Do your sales teams give discounts without rules, and without knowing what they cost?
We define who can grant which discount, to which customer, and in exchange for what. For every discount, we calculate the extra volume you would need to sell to make up for it. Decisions are then made with the full facts.
Fewer discounts, and every one of them justified.
Make prices move with your costs, your contracts and your demand.
Are your costs rising while you hesitate to raise prices? Or do your price increases fail to hold?
We decide where, by how much and for which customers to raise prices, and we measure the risk of losing volume.
We prepare the announcement, the arguments and the follow-up, customer by customer, so that the increase you decide is the increase you collect.
A price increase that is actually collected.
Are your commercial terms costly? Do your long-term contracts fail to follow inflation?
We review year-end rebates, payment terms, delivery charges and other conditions, so that every advantage you grant has something in return. These terms are often the most effective way to carry through the annual increase. We also write price revision clauses and indexation formulas that protect your margin for the whole length of the contract.
Terms that reward commitment, and contracts that keep their margin.
Are your prices the same all year, whatever the demand?
We make your prices vary with demand, season and availability, so that you earn the best revenue from your capacity.
Higher revenue from the same capacity.
Is anyone truly responsible for price in your company?
We define who decides on prices, through which process and with which indicators. Price becomes a clear responsibility, not a side task.
Clear ownership of price, and faster decisions.
Are your prices managed in spreadsheets?
We set up the tools and dashboards that let you follow prices, discounts and margin day to day.
Pricing decisions based on current, reliable figures.
GOING FURTHER
Pricing questions rarely come alone. There are two ways to work on them with us.
One area of expertise, handled on its own, with a tight scope.
Several areas of expertise working together: a full transformation in three phases, covered by our Signature Guarantee.
Tell us where you stand. We will tell you plainly whether we can help.
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