3. Identify and create price segments.Learn how to segment your market and separate opportunities for higher profit vs. opportunities to gain market share. Segmentation will allow you to raise prices in focused areas and reduce the risks of losing customers.
4. Measure price realization using benchmarks that are relevant. Make sure that you are comparing prices using like-for-like situation. E.g., Comparing a multi-million-dollar deal against the purchase of a single unit is ill-advised.
5. Set a goal to apply list price increases strategically. Do not accept a proposal to increase prices through a broad percent increase (e.g., 2% on all products). Use price segmentation to help identify areas of higher price sensitivity.
6. Use the services of a pricing coach. Get insights from a third party to accelerate progress to pricing excellence. An experienced pricing coach can examine price strategy, price setting, price execution and price management against best practices in the industry.
7. Create customer value with new products.Set prices on new product based on quantitative value-based pricing with timely price information. This is a key area where you can command price without hurting customer relationships.
8. Align your price strategy with your commercial strategy. Get insights from your commercial leadership to align your price strategy with where the commercial team is focusing resources to increase market share.
9. Capitalize on product rationalization.Product rationalization can represent an opportunity to apply price skimming before discontinuing a product.
10. Create awareness to the power of price as a lever to profitabilityProvide your teams with training to build a price culture that aligns price objectives between your finance, marketing, product management and commercial teams.