Improve profitability, market share and competitiveness
This interactive training program is suitable for cross-functional teams and is aimed at senior decision-makers. The courses are normally taught on-site and under NDA to enable open discussions of pricing model alternatives and potential impacts on operations, market share and profitability. We can tailor the program to meet the specific objectives of the client firm; the following course outline is an example of a typical schedule for large corporations.
What will you learn?
How to increase net profitability without introducing new products or additional investments in marketing. How to restructure and modularize your product and/or service offerings to improve gross profitability. Improve customer acceptance of your price positions. How to compete effectively with price cutters while maintaining market share.
Day 1 – Morning
Pricing Strategy Fundamentals
- Understand why pricing strategy is the most effective tool for improving profits.
- Stay ahead of competition What is the next step for pricing in your business?
- Answers to common questions like: When and why do salespeople give away the most revenue? Do your salespeople bargain with themselves? Is the customer as price sensitive as the salespeople think? What are the most common pricing mistakes companies do and how to avoid them.
- Increasing discounts and how to gain control.
- Successful business examples.
Exercise: Pricing simulation scenario game to develop and evaluate responses to market changes on product segments with different price sensitivity and with different margins.
Key Learnings: Fundamentals of pricing strategy and its impact on the business.
Day 1 – Afternoon
Develop Your Strategic Pricing Approach
- Identify your key customers and understand the pricing models required to make them profitable.
- Define your primary and secondary customer offers in three steps for different strategic accounts.
- Restructure your offer in two simple steps.
- Modularize your value proposition to fit with distinct customer needs.
- Offer a more flexible pricing structure.
- Price differentiation for new customer offers: Introduce new pricing models to new customers in order to improve competiveness.
Exercise: Walk-through of practical restructuring and differentiation pricing examples.
Key Learnings: How to develop a pricing strategy that puts your firm one step ahead of competition and simultaneously keeps you in line with market expectations.
Day 2 – Morning
Identify tactical opportunities in your company that with minimal effort will improve profitability within a single quarter.
Learn three steps to help you qualify a tactical opportunity.
Exercise: Identify three tactical opportunities and assess their potential for your company.
Key Learnings: How to identify and qualify tactical pricing changes that provide profitability improvements quickly.
Day 2 – Afternoon
Implementing Your Pricing Strategy and Tactics
- Proactive competitor pricing: How to assess and build realistic scenarios that anticipate competitor responses to your new pricing.
- How to increase market share using price while avoiding price wars.
- Which sales tools incentives have proven to be the most successful.
- How to create successful internal and external pricing messages.
Exercise: Develop an implementation plan for a tactical change and simulate how to respond in three different competitor scenarios.
Key Learnings: The most important factors for implementing pricing changes within the organization and how to adjust your strategy based on changes in the market.