The documented Pricing Strategy can then be used to tie all the key elements together.
It should define the process for updating and changing all the elements of the end-to-end pricing process, including:
- Roles and responsibilities
- Values and guiding principles
- High level objectives of list pricing & and discounting
- Complete set of pricing metrics (not just LPPS)
- Documented approach designing the discounting policy, programs and handling escalations
- A description of how list pricing & discounting fits into selling process
- How value is delivered to, consumed and sensed by customers …..
- Etc
So this is end-to-end pricing
Like the sculptor or bridge designer, the pricer should have an idea (thesis) what the final outcome should look like before he/she starts.
And that view will constantly evolve as more knowledge is obtained going through the ten steps …. the design assumptions are modified, the analysis re-computed, the outcomes compared to objectives, deltas analyzed, design assumptions modified etc ….. to get closer and closer to the optimal solution. A typical design process.
Anyhow, for your enjoyment, a simplified representation of End-to-End Pricing.
Extract from “10 Steps to Creating End-to-End Pricing” in April 2016 edition of The Pricing Advisor, authored by Paul Charlton of The Pricing Factory®.
- The Pricing Advisor is the monthly publication of the Professional Pricing Society, The World’s Leading Association Dedicated to Pricing Management.
- This is the second article of Paul’s that the Professional Pricing Society has published. Read the paper in slideshow format …..
- Any questions, please contact [email protected]
