Pricing is often given short shrift in organizations where it is viewed as a low-level task for marketing or an administrative function. However, pricing is key to an organization’s strategy and positioning in the marketplace. Depending on an organization’s objectives, pricing is perhaps the most powerful lever available to quickly improve financial performance, attract the best customers, or improve the perception of fairness in the marketplace.
Some of the questions we address include:
- Do we have objectives for pricing other than profit or revenue maximization?
- What is the optimal pricing model?
- What price levels should be set? How elastic is demand?
- How do we manage our pocket margin (actual realized price)?
- How do we manage pricing execution?
- Who should have the authority to change pricing structures or offer discounts?
In the public sector, we focus on revenue optimizing whereby pricing is used as a lever to deliver on organization objectives which may include profitability, fairness, or cost recovery among other objectives.