Re-tooling Pricing Processes for the Recovery
Posted by Tapan Bhatt on Thu, Nov 19, 2009 @ 10:44 PM
Well, it's now that time for executives, managers and analysts involved in setting and executing pricing strategies to plan for the year ahead. If you've already started the planning phase, you're coming out on the other side of a very prolonged recession. In the process of doing so, you may have adopted "survival" oriented pricing policies. Closing business at any cost, extending favorable payment terms, and not charging for services cost are just a few examples of survival-focused polices. Now that the recovery is in sight, it is time to closely examine these pricing policies and practices and make necessary adjustments.
In a recent interview with Manufacturing.net magazine, Jamie Rapperport, Vendavo founder and executive vice president of marketing and business development, discussed what business to business companies need to do to retool their pricing processes. He talked about the need to take a look at current policies and behaviors and see if companies need to change them. For example, a company may find it more profitable not to bundle some products and services. Instead, the company could review discount guidelines across products and transactions to prevent discounting too much and stay stay updated on the cost or impact of certain value-added services.
According to Jamie, "a small adjustment can provide a big payoff."
To guide you with your pricing strategies, this article provides insights you can take into consideration. You can also learn more about effective price management and price optimization strategies for the downturn by accessing our OnDemand Webinar.
Also, we'd like to hear from you? What are you doing to prepare strategically for the economic recovery?