Profit & Pricing Management : CSO the Challenge
In B2B management, pricing is not the biggest growth driver, but it is the most effective value driver. For B2B companies with common financial characteristics, the effect of price changes on return on sales and return on equity can be twice as high as the effect of quantities sold changes or COGS changes and five times as high as the effect of fixed cost changes.
In B2B companies in the context of profit & pricing, cost-based pricing (overhead calculation, etc.) is still predominant today, market pricing is rare and price optimization is the exception. The consequences are often too low returns and unused profit potentials. Weakly executed price discount policies, ‚one size fits all‘ pricing practices etc. destroy millions of Euros of contribution margin. Although price is an effective profit driver and many high-performance pricing techniques are known, they are still (too) little used in B2B sales.
Determining ‚right‘ prices is an analytical challenge, achieving them is an execution challenge. Ultimately, determining and realizing ‚right prices‘ is the result of the performance of a professional pricing management system.
Pro Pricing B2B : the Solution
The Profit & Pricing Management System for B2B companies (ProPricing B2B) is a management system designed according to the principles of optimization of Profitable Pricing. It
- is process and data driven according to the principle: from data to insights to actions in marketing and sales to results and outcomes in corporate finance
- closes the ‚missing link‘ between Marketing, Sales and Finance
- determines price elasticities and segments fast and accurately using transactional data analysis, i.e. from real customer buying behavior and real sales behavior of sales reps instead of expensive, error-prone and quickly outdated conjoint analysis
- automatically and dynamically optimizes profitable pricing based on AI algorithms (AI=Artificial Intelligence)
- optimizes profitable pricing at the levels of deals, bundles, portfolio, business unit, segment, etc.
- guarantees performance independent of existing IT systems, i.e. with or without CRM (Customer Relationship Management) as well as with or without CPQ (Configure Price Quote)
- increases profitable growth reliably and sustainably
ProPricing B2B can be used in any B2B company and in any industry as a pricing management system that supports profitable growth independent of the ‚big moves‘ at the level of corporate or business unit strategy.
How your Sales Organisation can achieve better and more profitable Pricing
Along the basic steps to profitable growth (PW) of your B2B business through better and more profitable pricing
- acquisition of effective pricing know-how
- design of a company specific pricing management system
- implementation of pricing management system
- realization of profitable pricing
Strategy B2B supports you with
- Expert services such as seminars /webinars, workshops and projects as well as
- Digital services such as Advanced Analytics & Artificial Intelligence based design and optimization.
Expert Service : Executive Seminar / Webinar ‚Profit & Pricing Management for the B2B Corporation‘
You would like to get a know-how transfer regarding professional Profit & Pricing Management for B2B corporations before undertaking concrete steps towards the design of an individual Profit & Pricing Management system ?
The Executive Seminar / Webinar ‚Profit & Sales Pipeline Management for the B2B Corporation‘ provides a know-how transfer and teaches you tools & methods, systematics & strategies for optimum profit & pricing in the B2B corporation.
Digital Service ‚Analyze – OptimAIze – Profitize B2B‘ (AOProB2B.Pricing)
You want to save scarce resources as time, personnel and know-how regarding the design of a company specific Profit & Pricing Management system ?
The digital service ‚Analyze – OptimAIze – Profitize B2B‘ (AOProB2B.Pricing) analyzes, defines and optimizes the Profit & Pricing Management system of your company using the ‚Profitable Growth OptimAIzer‘ – a Strategy B2B proprietary IT solution based on Advanced Analytics and Artificial Intelligence.
AOProB2B.Pricing addresses and optimizes the perspectives relevant for profitable growth and profitable pricing – from data to insights on actions in Marketing & Sales, in Operations & Management to results & outcomes in Corporate Finance
(Details : see page Analyze – OptimAIze – Profitize).2
Expert Service : Executive Workshop ‚Profit & Pricing Management for your B2B corporation‘
You would like to actively involve your executive management team in the know-how and design of profit & pricing management ?
The executive workshop ‚Profit & Pricing Management for your B2B corporation‘ provides a know-how transfer on the topic, provides a design for profitable growth of your B2B corporation generated by the AOPro service and develops a ready-to-implement program for the Profit & Pricing Management of your B2B corporation or sales organization together with your executive team.