Strategic Pricing: A Top Trend for 2010

In a recent article, Manufacturing Business Technology magazine explored the top trends that manufacturing companies will pursue in 2010.  Along with inventory optimization, expanded use of analytics and sustainability initiatives, one of the top trends was increased focus on strategic pricing.  It is not surprising that this view is validated by many different experts.

2009 was a very challenging year and most companies tried to sustain their profits by reducing costs to the extent that they could.  However, with increasing signs of life in the economy, most companies and Wall Street analysts are looking to revenue growth as a source of higher profits.  Clearly, volume expansion is one way to increase revenues but use of strategic pricing is another critical opportunity that companies just cannot afford to overlook.

In the MBT article, Derrick Herbst, Director of Business Consulting at Vendavo mentioned that "Many companies still view pricing as a tactical measure, done in an ad-hoc reactive manner. Companies need to get strategic about pricing by incorporating it into core company strategy and objectives."

This ad-hoc view of pricing is what makes it a substantial under-leveraged opportunity.  Strategic planning and execution of pricing has the potential to help companies deliver on their revenue growth objectives consistently.  

If you are not thinking about it, you risk being left behind by your competition!

To learn more about how your company can take advantage of strategic pricing in 2010, you can attend our live webinar.