Pricing Strategy

In our experience, pricing is 80% strategy! A coherent pricing strategy is therefore the core element of pricing successfully . It can help companies achieve corporate, divisional, and product goals by ensuring consistency and transparency throughout its pricing process.

While a good pricing strategy must be clearly defined for the lifetime of a product, it must also be robust enough to adapt to changes in corporate objectives, market conditions, or sales results. Oftentimes, companies with weak pricing strategies find themselves making pricing decisions haphazardly, and in a reactionary rather than an anticipatory manner.

SKP can address the following pricing strategy issues:

• How can pricing strategy be tailored to best achieve corporate, divisional, and/or product goals?
• How can pricing strategy guide key aspects of the pricing process (i.e. base price levels, discount structures and levels, and sales force incentives)?
• How should pricing strategy be used to influence pricing decisions throughout a product’s lifetime?
• How should pricing strategy be communicated throughout the organization to ensure that it is executed efficiently?
• Who should be involved in developing, revising and updating pricing strategy

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