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Price Capability Assessment

Best Practices:

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Many organizations view pricing as a cost-based effort or “the market sets the price”.
World class companies have strategies, processes, and tools that enable them to capture
the appropriate value from each customer – and earn higher margins.

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Price Optimization

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What is strategic pricing and why is it important?

Strategic pricing incorporates best practices in pricing and ensures that your pricing strategies, analytics and pricing processes complement your business strategy, capture the value you provide, and are consistent throughout the organization. Pricing is the single greatest lever you have to improve profitability, and your profits will increase when you price strategically.

When individual pricing decisions are generalized or made based on myths, fear, and narrow views of the market they will often result in sub-par profitability. By creating strategic pricing policies, analytics, and processes, you can directly capture customer value and turn that value into shareholder value.

Pricing that fails to recognize differences among customers, shortchanges shareholders by leaving value behind. Strategic Pricing Solutions is a hands-on consulting firm that helps companies get that value back.

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Recent Posts

Pricing Strategies for Inflationary Times

I read an article in the Wall Street Journal Friday, New Worry for CEOs: Rising Costs From Metals to Meat, that discussed recent increases in inflation.  Curiously, the article subtitle was Companies could be forced to raise prices or eat the additional expense.  I think they have it wrong.  Companies should look a...

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Irrationality Has Its Limits

A couple years ago I wrote a post, The Myth of the Rational Consumer, in which I discussed evidence that customers really don’t want to change products or providers.  I expanded on those views in a subsequent post The Myth of the Rational Consumer – Take 2.   Much of the evidence I offered related to car owners who...

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