About Strategic Pricing Solutions
Strategic Pricing Solutions (SPS) is a pricing consulting firm helping clients with pricing strategies, data analytics, and pricing processes.
Strategic Pricing Solutions was formed by Scott Francis in 2005 with a vision of enabling B2B clients to build sustainable strategic pricing capability to significantly improve their profitability. By providing flexibility in how we serve our customers, Strategic Pricing Solutions consulting enables clients to build sustainable strategic pricing capability and continuous improvement in profitability through better pricing decisions.
Scott is an executive with extensive management experience in complex domestic and international environments with a demonstrated track record in profit improvement and executive leadership in pricing, finance, and marketing. Prior to forming Strategic Pricing Solutions, Scott’s roles in industry included SVP Marketing & Pricing, VP Finance and CFO of multiple businesses.
Strategic Pricing Solutions’ consultants are all senior executives with years of hands-on experience in pricing, strategic planning, marketing and finance. As engagement leaders, our pricing consultants spend time both engaging in strategy discussions with senior management and rolling up our sleeves and working with data analysts. This enables SPS to be flexible in designing engagements to meet our customers’ needs.
OUR CONSULTING SERVICES
The Strategic Pricing Solutions consultant engagements focus on utilizing rigorous analytics, behavioral economics, and pricing strategy discipline. Our goals are to provide our clients with specific actionable recommendations for near-term and long-term improvements in pricing strategies, analytics, and processes and to transfer our knowledge and methodology to them. When done properly, the shift to a more strategic value-based pricing capability typically results in sustainable profit improvements of 1% to 4% of sales.
OUR PRICING METHODOLOGY
Strategic Pricing Solutions starts with a view that pricing decisions should be driven by the data, and pricing strategies should be aligned with business strategies. That means pricing strategies should reflect the clients’ value proposition and how they can win in their markets. We also believe that the value equation usually varies among customers, and pricing should match those different levels of value – turning customer value into shareholder value.
We are flexible in how we offer pricing consulting services to clients, and we develop custom engagements ranging from quick diagnostics, to providing regular pricing analytics to implementing complete price optimization and value pricing processes. In any engagement, we encourage our clients to finalize their pricing strategies and identify the pricing improvements they want to make before investing significantly in new pricing tools.
Strategic Pricing Solutions pricing processes is based on data as represented by these charts and graphs
Our pricing methodology starts by segmenting the customer base and identifying the different levels of value for each. Then using client data, we conduct extensive analyses of historical performance by segment, customer, and product type, plus relative price comparisons, and comparisons of price to value. This work can provide a quick view of where the opportunities for improvement are, and how much they could be worth.
The next step is to recommend pricing strategies and structures that reflect the clients’ competitive strengths, are aligned with the values for each segment, and begin to correct specific prices that are not aligned with customer value. These recommendations are often piloted on a subset of the business, to prove that the changes will deliver value, and to develop organizational buy-in.
Implementing sustainable value-based strategic pricing requires commitment, and typically organizational change management is required. The SPS process includes training to develop the required skill sets, tools to facilitate the process, and management processes to lead and reinforce the changes. Additionally, implementation should include measuring results versus objectives and making adjustments based on the results.