- Price setting processes including benefit measurement methodologies & tools
- Discount management processes
In our experiences, more projects and initiatives fail for execution related reasons rather than poor strategies. For price setting (e.g. list prices), the most important factors are:
- Ability to change and publish list prices accurately
- Ability to deliver new price files to channel partners and customers while complying to contractual agreements
- Ability to react quickly to market changes including competitive moves, cost changes, and other external market influences
Some of these issues can be tackled brilliantly through software while others remain issues even after software implementation. The key is to develop list price setting competencies through people and processes first and then institutionalizing them through the software.
With the exception of a few industries such as retailers, catalog distributors, or e-commerce companies, most companies’ transactions happen at prices below the list prices. This means rational discounting management and managing other profit leakages can have a greater impact on the bottom line. The key is to provide sales with tools and guidance to make better decisions and reinforce desired behavior through measurements and incentives.