Beyond Price Diagnostics | Mapping the Path to Pricing Power
Profitable and revenue-driving pricing requires an intricate and interconnected set of capabilities and practices to deliver superior margins and sustained pricing power. And an organisational price diagnostic is the astute first step to achieving pricing power.
Unfortunately the typical pricing diagnostic will not provide much pricing insight for two primary reasons:
1 Misdirected Benefits. The often random set of questions has been typically compiled for the benefit of the consulting and/or technology provider; and
2 Unfounded Theories. There are far too many diagnostics based on conjecture, untested models, and legacy paradigms.
From the ground up, our Price Analyser + Diagnostic [PA+D] has been developed from current and sound academic research, validated case studies, and the effective best practices of price leaders spanning multiple industries.
At its core [PA+D] draws upon principles in pricing, behavioural and microeconomics, business and competitive game theory, and organisational dynamics.
[PA+D] delivers an objective and unbiased assessment of an organisation’s current pricing capabilities, actionable recommendations, and an assurance of continued price performance.
Beyond Price Diagnostics | Delivering Organisational Pricing Insight
The diagnostic component of [PA+D] explores and assesses the eight organisational practices and capabilities proven to drive sustained price realisation distinctive pricing power.
Masked client data of the eight dimensions supporting pricing power. Each dimension and sub-dimension has been statistical tested for validity and reliability.
The Price Analyser component of [PA+D] builds unique pricing insight by going beyond traditional analysis such as pricing waterfalls and price-realisation averages to predictive analytics that identify:
Sub-optimal pricing that’s destroying revenue and profit
Ill advised discounting and the associated causes and processes
Poor value-capture pricing architectures
Sales-person price efficiency and exactly what’s required to lift performance
Uncaptured price increase opportunities by product/account/category/segment
Beyond Benchmarking | Leveraging Latent Organisational Knowledge
The typical price diagnostic attempts to build a burning platform for change by contrasting organisational results with “benchmark” data.
The problem with benchmarking is that it puts all organisations in the same pricing boat.
This will invariably aggravate a unique pricing problem with a me-too solution.
In contrast [PA+D] leverages latent organisational knowledge to assess the link between the [PA+D] dimensions and price performance.
Proprietary analysis then maps the unique path to pricing power for each organisation.
The [PA+D] analysis and results are specific to each organisation in the context of its future competitive landscape. As such [PA+D] is not a backward looking benchmarking exercise which assumes that all organisations should play by the same rule book.
To explore and leverage the pricing insights delivered by [PA+D] and to map your organisation’s path to pricing power please contact us.