Smarter Pricing: How to capture more value in your market

Chapter takeaways

• Price decisions must be co-ordinated across the functions of a company lest the potential profit from higher list prices is simply passed on in increased discounts.

• In business-to business achieving profitable results from sales forces with discount negotiating authority needs accurate knowledge of actual discounts, controlled authority levels and incentives based on contribution.

• In consumer markets, the width of the price band and the extent of promotional pricing depends on the expandability of the sector and the brand reputation.

• Measure price performance at the ‘Pocket price’ level, taking into account all discounts, over-riders, rebates and allowances.

• Pricing success is measured not simply by rising sales or rising margins, ...