Pricing Strategy Advisory
For Executives, Managers & Pricing Teams
Want Some Extra Fire-Power As You Develop Pricing Strategy With Your Pricing Teams?
Having some deep expertise to call upon just as you and your teams need it is the best way to mitigate risks as you set up your pricing capability project
- Generate 2-9 percentage points of sustainable margin improvement with initial benefits within 3-6 months
- Identify the Organisational Structures and Pricing Strategy Framework to drive more revenue and safer margin growth
- Avoid costly consultancy fees and underwhelming results
Download your Executive leadership guide to Commercial Capability Building
THE NUMBER 1 MISTAKE
The biggest mistake CEOs can make is to overestimate the ability of consultants or algorithms to fix pricing and drive commercial strategy. Or, indeed, asking teams to put together tools that frequently do not work well together.
Relying on consultants and algorithms to drive strategy is a quick fix that frequently fails to deliver long-term results.
Asking teams to fix pricing without the requisite resources, capabilities and organisational structures sets them up for failure.
Having targeted advice at critical points in the pricing journey enables teams to bypass painful change processes. Driving commercial strategy three times faster than organic change.
Relying on consultants and algorithms to drive strategy is a quick fix that frequently fails to deliver long-term results.
Asking teams to fix pricing without the requisite resources, capabilities and organisational structures sets them up for failure.
Having targeted advice at critical points in the pricing journey enables teams to bypass painful change processes. Driving commercial strategy three times faster than organic change.
WHAT’S CHANGING
This current wave of inflation is the worst in 30 years. Central banks around the world are working to target interest rates. The purchasing power of the dollar has fallen significantly over the past 10 years. Many price increases are lagging behind industry indices.
Your teams are operating in murky and dangerous waters with:
Your teams are operating in murky and dangerous waters with:
- The rise and fall of input-costs
- Demand spikes creating new cost pressures
- Large and under-valued product inventories creating substantial margin leakage
- Share prices plummeting when businesses cannot drive or capture price increases
The right level of support from advisors at the right time can go a long way. It can mitigate many of the risks that derail pricing transformations. While accelerating price rise problem solving to reach key milestones and outcomes.
IMMEDIATE RISK TO PROFIT
If legacy pricing practices are too slow and too lax, businesses will experience significant margin leakage. When sales teams have the discretion to further reduce prices by 5% and EBIT margins are 5%, 100% of the EBIT margin is theoretically at risk.
Pricing can be a lever for profitable revenue growth. But it can also be a major source of margin loss if there is no proper management.
Pricing can be a lever for profitable revenue growth. But it can also be a major source of margin loss if there is no proper management.
ADDITIONAL RISKS
The real elephant in the room is siloed culture. When a pricing project is led by IT vendors or strategy consultants, often culture and people problems are not addressed and yet another divisive silo emerges between the team and consultants.
When algorithms are relied upon to drive revenue they often don’t account for the extreme price changes necessary to offset inflation and cover costs.
When businesses rely on pricing systems to set and manage pricing, many vital workflows and processes are left unclear and execution often fails.
As pricing projects start, many cross functional teams are pulled together to work on the project. Many don’t know the vision or rationale for change and do not see it as a priority. Others don’t know what they are supposed to be doing. It is common for teams, for example, to prioritise low value, day-to-day tasks above mission critical price rise tasks with a deadline.
Working at cross purposes and in siloed businesses costs businesses millions of dollars in lost annual price rise revenue alone.
When algorithms are relied upon to drive revenue they often don’t account for the extreme price changes necessary to offset inflation and cover costs.
When businesses rely on pricing systems to set and manage pricing, many vital workflows and processes are left unclear and execution often fails.
As pricing projects start, many cross functional teams are pulled together to work on the project. Many don’t know the vision or rationale for change and do not see it as a priority. Others don’t know what they are supposed to be doing. It is common for teams, for example, to prioritise low value, day-to-day tasks above mission critical price rise tasks with a deadline.
Working at cross purposes and in siloed businesses costs businesses millions of dollars in lost annual price rise revenue alone.
THE COSTLY ROAD TO RECOVERY
Since 2010, Taylor Wells Advisory firm have worked through 23 pricing transformations. We continue to work with teams to solve some of the most pressing pricing and commercial challenges. Including:
- Companies with no official customer prices or costs for thousands of products.
- Businesses with a legacy list price with hundreds of price inconsistencies.
- Firms that implement a price rise without updating their customer pricing records or contracts.
- Bulk pricing uploads with the wrong customer IDs.
- ERP systems with thousands of redundant pricing records.
- CRMs with rolling rebates and no performance targets or tracking.
- Special prices with no updates and thus never expire.
- No authorisation of customer contract prices.
From our experience, 3-9 percentage points of margin are lost across total revenues when businesses rely on broken consulting models, and as teams work within siloed structures.
Download your Executive leadership guide to Commercial Capability Building
HOW TO ACCELERATE COMMERCIAL AND PRICING STRATEGY FOR LEADERS & PRICING TEAMS
Getting pricing right is challenging for teams when they are managing millions of dollars worth of revenue, complex product portfolios and multiple contract agreements across many different market segments and customer groups. In addition, mistakes are much more costly when market environments are under inflation, competitive moves, fluctuating raw-material prices, and regulatory constraints.
However, it is possible for teams to fast track the journey from start to finish. How? By teaming up with pricing advisors to isolate the exact resources and activities that lead the business to revenue and margin growth.
However, it is possible for teams to fast track the journey from start to finish. How? By teaming up with pricing advisors to isolate the exact resources and activities that lead the business to revenue and margin growth.
THE SOLUTION
We want to ensure your teams are successful in their mission to move the business from cost plus to value based pricing. This is why we offer a proven system of commercial advisory that de-risks a pricing transformation project.
Essentially we help you to build teams and structures (pricing & organisational) that have the potential to develop and deliver commercial strategy. Then, we use targeted and blended coaching programmes to unlock your teams’ potential to drive profitability according to a strategy roadmap using Best-in-Class Value-Based Strategies & Practices, Margin Expansion Plans, Pricing Frameworks and Performance Support.
As we progress through the initial strategy development process with your teams, we use our optimised digital commercial system to capture all ideas, tasks, workflows and team independencies. Nothing is lost. Everyone knows why and what they are doing and how to do it.
Essentially we help you to build teams and structures (pricing & organisational) that have the potential to develop and deliver commercial strategy. Then, we use targeted and blended coaching programmes to unlock your teams’ potential to drive profitability according to a strategy roadmap using Best-in-Class Value-Based Strategies & Practices, Margin Expansion Plans, Pricing Frameworks and Performance Support.
As we progress through the initial strategy development process with your teams, we use our optimised digital commercial system to capture all ideas, tasks, workflows and team independencies. Nothing is lost. Everyone knows why and what they are doing and how to do it.
OUR APPROACH TO DEVELOPING PRICING STRATEGY FOR COMMERCIAL EXECUTIVES & PRICING TEAMS
Unlike traditional consultancy, we strongly believe that the pricing transformation is powered through your teams from start to finish, not us. Our advisory, expertise and optimised systems support and guide them to reach outcomes faster. But its your leaders that take the lead. We enable and support them.
We are advisors, rather than pricing consultants. Unlike most consultants, we are willing to share our knowledge and collaborate. We do not enforce, rather we advise and co-create IP with you teams using latest research, best in class practices and proven frameworks and methodology.
We are a pragmatic firm: We will get into the weeds with your teams to fix technical and functional pricing problems and believe that you need to range between the detail and strategy in order to get the best outcomes.
Our key strengths are forging a path in chaos and then keeping things moving forward step by step until teams reach their strategic destination.
Learn more about our approach here.
We are advisors, rather than pricing consultants. Unlike most consultants, we are willing to share our knowledge and collaborate. We do not enforce, rather we advise and co-create IP with you teams using latest research, best in class practices and proven frameworks and methodology.
We are a pragmatic firm: We will get into the weeds with your teams to fix technical and functional pricing problems and believe that you need to range between the detail and strategy in order to get the best outcomes.
Our key strengths are forging a path in chaos and then keeping things moving forward step by step until teams reach their strategic destination.
Learn more about our approach here.
Connect with our commercial capability building service
THE PROCESS
Our strategic advisory & support is spread out at different levels of the organisation. Starting with:
- Initiating Diagnostics – Strategy, Stakeholders, Systems, Operations & Data
- Strategic Resourcing – Pricing Recruitment & Capability Evaluation for Pricing, Sales & Marketing teams (Internal & External)
- Margin Maximisation Planning – Project and price scoping. Evidence Based Size Of Prize Estimations. Project timeline Recommendations. Price Strategy Execution Roadmap.
- Pricing Strategy Framework Development & Testing – Price Structure Recommendations – Strategy, People, Systems.
CASE STUDY ON PRICING STRATEGY FOR PRICING TEAMS
HOW AN ASX INDUSTRIAL BUSINESS WAS ABLE TO GENERATE AN ADDITIONAL 9.5 PER CENT MARGIN IN UNDER 6 MONTHS WITH NEW TARGET PRICING
GET YOUR COMPLEMENTARY COMMERCIAL AUDIT
A free, no-obligation offer. Cut out the hearsay and confusion. Find out where you stand. Learn where you need to build capability to drive commercial strategy.