Smarter Pricing: How to capture more value in your market

Higher prices (but higher discounts)

Smarter pricing needs every player in the pricing decision to share a common strategy. All too often, different players have divergent aims and aspirations. Top management such as managing directors and finance directors may not see pricing opportunities in the same light as trade negotiators or brand managers.

Top management, for example, reflects revenue and profit aspirations in its targeted prices. It considers the level of market inflation with data and forecasts from company economists and will be aware of indices of raw materials and labour costs. With an eye to shareholders’ expectations, it is eager to grow margins. Often it will place more reliance on hard facts – such as raw material costs or current ...