Profit & Pricing Management

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Profit & Pricing Management : the CSO 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.

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Pro Pricing B2B : the Solution

The Profit & Pricing Management System for B2B corporations (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from real customer buying behavior and real sales behavior of sales reps instead of expensive, error-prone and quickly outdated conjoint analysis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.

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How your Sales Organisation can achieve better Pricing and more profitable Pricing

Along the basic steps to profitable growth (PW) of your B2B business through better pricing 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.

 

Profit & Pricing Management Expert Services and Digital Services

Professional profit & pricing management beyond mainstream : our expert services and digital servicea

Management know-how will be transferred to your executive management team by means of the

  • Seminar ‘Profit & Pricing Management’ 

Duration : 1 day

Participants : C-level executive management team consisting of e.g. CEO, CFO, CSO, CIO, head of business unit

Delivery format : exclusively as inhouse seminar

Programme : download

Location : your enterprise or a business hotel of choice (e.g. in Überlingen / Lake Constance)

Profit & pricing management know-how will be delivered and applied to your enterprise in the course of the

  • Workshop ‘Profit & Pricing Management for My B2B Enterprise‘

Duration  : 1 day

Participants : C-level executive management team consisting of e.g. CEO, CFO, CSO, CIO, head of business unit

Delivery format : exclusively as inhouse workshop

Programme : download

Location : your enterprise or a business hotel of choice (e.g. in Überlingen / Lake Constance)

Profit & pricing management know-how for the individual executive will be delivered in the format 

  • Executive Coaching ‚Profit & Pricing Management‘

Delivery format : Individual coaching

Participants : individual C-level executives e.g. CEO, CFO, CSO, CIO, head of business unit

Duration : according to mutual agreement

Programm : according to mutual agreement 

Location : according to mutual agreement, typically off-site (e.g. business hotel in Überlingen / Lake Constance)

Your profit pricing management system will be designed ‚computer-aided‘ based on digital business data (master data, target data, transaction data from ERP, CRM, BI etc.) by means of big data, advanced analytics & artificial intelligence methods 

  • Quantitative analysis of your business and it’s current management system by means of ProAnalyzer
  • Quantitative development of management potentials, management alternatives and management options
  • Quantitative management optimization by means of ProOptimAIzer
  • Derivation of management system implementation (programmes, projects, processes, performances, actions etc.)

We escort and support the realization and the successful implementation of your profit & pricing management system until the achievement of the objectives

  •  Profit Pricing Management System Implementation

Duration : according to mutual agreement

Programm : according to mutual agreement

We support your corporation in the design and the implementation of your profit & pricing management system via 

  • Profit & Pricing Interim Management

Duration : according to mutual agreement

Content : according to mutual agreement

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Last but not least

Compete on value, not on price.