November 26th 2010
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
- Solicit Sales Feedback Marketers Can Use (customerthink.com)
- How to Manage a One-Person Sales Force (inc.com)
- When does the customer first ask about price? Pricing part 2. (regnordman.com)
- Hiring Your First Salesperson: How to Pass the Torch (entrepreneur.com)
- The Strategy and Tactics of Pricing. A guide to growing more profitably. Thomas T. Nagle, John E. Hogan, Joseph Zale. (regnordman.com)
- Customer history, is it helpful in raising prices? Pricing part 5. (regnordman.com)
- Your Company culture often works to resist raising prices. Pricing part 4 (regnordman.com)
- Are you still using Groupthink to set prices? Pricing panel 8 (regnordman.com)
- Pricing survey indicates you are dropping prices, but for the right reasons? Part 1. (regnordman.com)
- Does finance still set your prices? Pricing panel part 7.
- Pricing survey indicates you are dropping prices, but for the right reasons? Part 1.
- Sales’ response to a price rise. Pricing part 9.
- Your Company culture often works to resist raising prices. Pricing part 4
- When does the customer first ask about price? Pricing part 2.