September 10, 2015
This blog is part of our “How to Be a Better Pricing Strategist” series, in which we asked top thought leaders and industry experts in the pricing field: “What is the best advice you could give a fellow pricing strategist?” Read all the responses here.
You will probably be surprised, and possibly embarrassed, by the data you see when you first start analyzing your profit.
You may see transactions with lower margins than you expected. In fact, you may even see negative margin transactions. You have never had this unique view of transactional data before, and it can be a bit shocking. As one Marketing Manager declared on a previous project, “I would have never approved that deal if I knew the margin was that low!” Key stakeholders may feel threatened by this data. And, this can be a significant change-acceptance concern for your project.
So, when you start your pricing initiative, prepare your team in advance for this information. Your organization should be ready to accept the message your data is telling you. Use this as a starting point to modify your organization’s current pricing strategy to drive increased pricing effectiveness.
To read more expert tips and advice, take a look at our Pricing Best Practices SlideBook here.