Archive for November 26th, 2010

So what can a CEO, Marketer, Salesperson, or CFO do to improve your pricing? Pricing part 11

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So what can you do to improve your pricing? Pricing part 11.  Tips if you are a CEO, Marketer, Salesperson, or CFO

What can a CEO do?

  • You are the holder of common sense. Does the pricing policy ( you do have policy? ) make sense to the customers?
  • Manage the change process expectations. Of course it will take time and hard work.
  • Set up cross functional teams to set your pricing policy
  • Keep your marketing dept focused on maintaining constant  deep market research
  • Move to pricing excellence, not blaming sales and marketing.

What can the CFO do?

  • Track the price waterfall for individual transactions, especially Outlaw customers
  • Track contract compliance by customer
  • Monitor discounts ( discount creep) including unplanned ones. *(eg extended credit, missed deadlines, rebates, one time promos, signing bonus, partial shipments and so on
  • Have quarterly analysis on pricing initiatives given to sales/marketing to track real impact on net profits
  • Keep long term look aheads on pricing trend and impacts

What can marketing do?

  • Be on top of the value drivers (stories) for every stage of customer progress through engagement, buy and close.
  • Manage communications to ensure price changes are open, transparent and believeable.
  • Test before you deploy
  • Create templates, policies, and documentation to support value selling by sales.

What can sales do?

  • Actively create and train on tactics and tools to demonstrate and maintain value through the sales process.
  • Collect supporting customer stories, competitive data, and validate buyer stories. get this back to marketing.
  • calendar tender and contract expiry dates – Pre call proactively and early.


  • Strategy & Tactics of Pricing – 5th ed. Thomas T. Nagle
  • Practical Pricing. Michael Calogrides. 2010