Tuesday, July 15, 2014

Become a Great Pricing Director


What Does It Take to Become a Great Pricing Director?
When I work with clients on pricing transformation, they often ask what skills they should look for when hiring a Pricing Director to lead the initiative.
Before I answer the question, let’s talk about what a pricing director is often charged to do:
  • Brings pricing best practices (tools, frameworks, processes, capabilities) to the organization
  • Drives mindset change
  • Gets people throughout the organization to make smarter pricing decisions
Since a Pricing Director is typically not the final decision maker nor has the rank to stop bad decisions, he or she essentially is a change agent without the power. Not an easy job indeed.



Susan S. Lee
Partner
Simon-Kucher & Partners LLC
Strategy & Marketing Consultants
One Canal Park, Cambridge, MA 02141, USA
Tel: +1 617 231 4565, Fax: +1 617 576 2751

Wednesday, July 9, 2014

PPS Inaugural LATIN AMERICAN Pricing Workshops & Conference



Pricing: A Brazilian Perspective


Staying informed with pricing has become an essential part of how you do business in any industry. Brazil understands this concept better than anyone. There are several aspects to pricing that can often be challenging and sometimes unclear.

The Professional Pricing Society is here to help. We will hold our Inaugural Pricing Conference in  São Paulo, Brazil on 27-28 August 2014 where Frederico Zornig will be speaking on the Brazilian Pricing Perspective to give you his incredible insight on the topic.

Mr. Zornig has over 25 years of pricing experience in Brazil and across the globe. As a Brazilian native he understands what works in Brazil and how different local and regional conditions can affect pricing.
 Attendees will learn:
  • What is working in Brazil and what is not in pricing
  • Key challenges for local pricing implementation
  • Overview of business conditions in Brazil and how they affect pricing decisions

Tuesday, April 15, 2014

How Do You Grow Profits by Designing Offers for Target Markets?


Exceptional companies, in both revenues and profits, are not purely “customer-driven”. They instead target markets, and design offers for those markets, where they can leverage operational differences to compete from a position of strength.

How can companies stop losing money due to excessive price competition?

When many companies all pursue that same strategy simultaneously, most lose money due to excessive price competition. Convincing purchasing departments to help find win-win ways to serve customers more efficiently enables firms to grow more profitably.

Discover an alternative to the old “customer-driven” paradigm

During the Advantage-Based Marketing for Profitable Growth Keynote Presentation at the PPS 25th Annual Pricing Conference in Chicago, Lisa Thompson will teach attendees how to build price and discount structures that attract more profitable customers, and drive the high costs ones to competitors. Utilizing two decades of experience helping clients with their organic growth goals as well as increasing gross profits through better pricing, Lisa will discuss how to target the customers you can serve with competitive advantage.

How Do You Harness the Power of Social Technology to Create Better Pricing Strategies?

Social tools like Facebook and Twitter are changing how companies interact with their customers, and there are far-reaching impacts on pricing as Social Listening technologies bring new access to real-time information about customer attitudes, emotions, desires, and actions.

How can pricers leverage Social?

Companies are harnessing the power of Social technology to forge closer ties (and updated pricing strategies) with their customer bases.  Social provides an amazing opportunity for pricers to become even more instrumental to their organization’s customer relationships. It is a catalyst for building a bridge to marketing teams who need help pulling insights out of mountains of data. 

Learn how to harness the power of Social technology


During the Getting Social with Pricing Keynote Presentation at the PPS 25th Annual Pricing Conference in Chicago, Laura Preslan will help participants learn how to get the most out of Social. Utilizing her experience managing a global team of over 50 pricers who set all prices for Microsoft’s Online Advertising business, Laura will discuss what Social means for pricers in the B2B and B2C spaces while giving examples of how Social technology changes customer interactions. 

Tuesday, April 8, 2014

How Do You Develop a Pricing Strategy for Long-term Profitable Growth?

Every organization wants to achieve profitable growth over the long term and become sustainable. However the tendency is to focus on improving current operations and meet short-term expectations. The organization that does not allocate the resources required to build future-growth platforms is short-sited. Developing world class pricing strategies and capabilities better positions organizations for long-term profitable growth, but developing a pricing strategy is very difficult. 

How do you build an effective pricing strategy?

In order for a pricing strategy to be effective, an organization must build value-based pricing strategies, establish new product offer structures and pricing, and create win-win strategies to support major account negotiations. In addition, organizations must incorporate value into their product development processes and build value-based pricing and selling capabilities, tools and training.

Learn how to effectively institutionalize a pricing strategy process that is robust and enduring

During the Building an Effective Pricing Strategy workshop at the PPS 25th Annual Pricing Conference in Chicago, Kirk Jackish will help participants create more effective and enduring pricing strategies by focusing on experiential exercises that allow pricers to test world class tools and processes that generate high impact pricing strategies. Utilizing his 20 years of strategic pricing and consulting experience, Kirk will explore best in class tools, frameworks and processes for developing pricing strategy.  Workshop participants will have ample opportunity to ask questions and share experiences that will heighten the learning for the entire class.

Tuesday, April 1, 2014

What Are the Best Practices in Pricing Organization Design?

With more companies valuing pricing’s strategic importance, they increasingly look for insights on how to best organize their pricing function and resources. Pricing has been elevated from an informally managed, fragmented function to a rigorous business discipline with an acknowledged need for an organizational infrastructure to manage it.

How should your company’s pricing function be structured and organized?

The design of the pricing function has to be accomplished in light of the right decision authority, reporting relationships, centralization vs. decentralization, skill requirements, governance and key performance metrics. Understanding the role that culture plays in structuring a pricing function is vital, as is establishing the right types of roles and responsibilities.

Learn to identify the core competencies and skills required for a successful pricing organization

During the Beyond the Organization Chart: How to Structure and Organize Your Company’s Pricing Function workshop at the PPS 25th Annual Pricing Conference in Chicago, Larry Montan (pictured top left) and Maggie Laird (pictured bottom left) will explore how to diagnose common issues and barriers to pricing function performance. Workshop attendees will also learn how to manage pricing talent and future trends in pricing organization structure.




Tuesday, March 25, 2014

How to Price and Design Products for Profitability

ScottDavisEffective product design considers the trade-off between what a customer is willing to pay for various potential features and what it costs to provide them.  When designing a product line with a customer orientation a manager should contemplate which market segments will be the primary targets and what each segment will be willing to pay for each set of features.

How do you develop a product line that achieves the desired market penetration while minimizing unprofitable cannibalization?


To do so successfully, consider different approaches to pricing new products such as skimming and penetration pricing.  Improve product line and product mix profitability by using bundled pricing. In addition to cannibalization – consider competition and customer psychology in designing and pricing product lines.

During the Pricing and Designing Products and Product Lines for Optimal Results workshop at the PPS 25th Annual Pricing Conference in Chicago, Scott Davis will review the primary ways of estimating customers’ wiliness to pay for product features. Valuable for product and brand managers responsible for designing and pricing product offerings; this workshop includes interactive discussions and opportunities to analyze simplified case studies to understand how to apply the key concepts with the assistance of spreadsheet models.

Tuesday, March 18, 2014

Value Price Like a Pro

Value pricing, when done right, can provide higher profits, more competitive products, and customer-oriented marketing. To effectively execute value pricing, pricing professionals must be able to think like a CFO and communicate like a sales professional to determine the target customer’s true willingness to pay for a particular product. 

How do you effectively execute value pricing?

To do so successfully, you must understand the basic elements of financial statements and how your product and service benefits translate into quantifiable economic terms that make a difference to customers. 

Learn the basic rules on how much is a fair share of value an organization can keep and how much they must share with the customer.


During the Financial Management for Value Pricing workshop at the PPS 25th Annual Pricing Conference in Chicago, Adrienne Gordon will break value pricing down into simple, concrete steps. 

Attendees will learn a method to view customer income statements, balance sheets, and cash flow statements as a simple one page process flow map where each element has a purpose. Case studies of well communicated value statements will be reviewed along with examples of value creation and how it affects each financial element in the process.

Friday, March 14, 2014

Foolproof your Price Improvement Effort

 Pricing done right can have a huge impact on a company’s profitability. Reliable price intelligence can enable them to develop new pricing and promotional strategies in order to compete more effectively and maintain margins.  However, many pricing initiatives prove ineffective because of unanticipated factors that are counterproductive to obtaining results.

Is your company struggling in pricing between sales generation functions and sales disruption functions?


How can your company achieve a quick-win through intuitive analytics?

Because Asian companies are familiar with working in a traditional paradigm, the sales function has to lead revenues and take full responsibility of its results. In a matured pricing perspective, if your company is still looking at the shadows and not the reality of these functions, you have the chance to be a successful pricer and leader of change in your organisation and across industries.

Learn step-by-step approaches to earn the engagement of internal stakeholders around pricing.

 

During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore keynote session From Shadows to Reality: Facilitation with Numbers Across Sales, Finance and Marketing, YongHyun Kim, CPP will ensure attendees leave this session with tools and examples of success from simple and powerful analytics to reshaping commercial polices instinctively.  Pulling from his 13 years of strategic pricing management experience and capabilities, Mr. Kim will help attendees learn how to avoid functional silos to achieve pricing excellence.

Tuesday, March 11, 2014

Enhance Your Pricing with a Multi-Year Business Strategy

As customers demand more transparency around pricing, businesses incorporate a plethora of sales and marketing strategies to remain profitable. Creating strategies and marketing/sales actions that are understood at the highest level and executed throughout all levels of the company have potential to positively impact your company’s ability to increase prices in the short, mid and long-term.

Which business and marketing strategies optimize future pricing dynamics and performance?

What is the best approach to market and competitor analysis?

Outstanding price performance is the result of pricing organizations that raise the pricing competence of the marketing /sales organization, influence leadership behaviors to support pricing excellence, run pricing projects across diverse industries and implement pricing processes/systems.

Create the potential for improved market dynamics over a multi-year time frame by refining your business and marketing strategies.

Joanne Smith, former DuPont Corporate Head of Marketing, Pricing and Customer loyalty,  will discuss the importance of strategic pricing and behaviors for specialty and commodity businesses in her workshop Advanced Strategic Pricing: Setting a Multi-Year Business Strategy to Enhance Pricing

During the PPS 25th Annual Pricing Workshops and Conference in Chicago workshop participants will also review the behaviors and actions of marketing and sales, as it relates to price execution, that enhances your ability to positively impact pricing.

Monday, March 10, 2014

Pricing Professionals as Agents of Change

One of the most critical elements in an organization’s journey towards pricing excellence is its capacity to change.  Price setting and implementation has implications throughout an organization; requiring pricing professionals do more than analyze data – they must become agents of change.

What’s the most difficult part of a pricing professional’s job?


According to a recent poll conducted by Pricing Solutions in Asia, the answer is change management. In fact 94% of those polled put change management at the top of the list, which makes it one of the few issues that unifies pricing professionals across industries, geographies and levels of experience.

Learn how to recognise the common symptoms associated with inadequate change management.

During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore keynote session How Can One Beat the Odds and Lead Change in Pricing Organisations, Dominic James will explore the challenges surrounding both operational and strategic change for pricing today. 

Pulling from his 10 years of experience leading large-scale transformations for some of the biggest companies in the world Mr. James will help attendees learn how to take practical actions to gain organisational support.

Tuesday, March 4, 2014

Understand the Science behind Pricing Software

Today, a number of software solutions are available to aid in the process of pricing decisions. These “black box” solutions range from simple rules-based price planning offerings to highly sophisticated price optimization models.

What should you consider when selecting a price planning and price optimization solution?

How do you take the guesswork out of forecasting?

Can a solution truly be customized to your specific business needs?

Take a step behind the curtains of the pricing analytics software solutions and examine the fundamental modeling concepts that make them work.  Modeling results and insights help to forecast demand, develop pricing and promotion strategies, control inventory levels and improve customer satisfaction.

During the PPS 25th Annual Spring Pricing Workshops and Conference in Chicago, you can attend a full-day workshop entitled An Introduction to the Science of Forecasting with Price and Substitution Effects, Dr. Mark Ferguson will walk you through the basics of forecasting historical sales data and measuring price effects.
Workshop participants will have “hands-on” practice using some of most common forecasting and price-optimization models .

Monday, March 3, 2014

Unlock Profit Potential in South-East-Asia

Price pressure from competitors, rising raw material costs and inflation rates worry company managers, despite steady economic growth in South-East-Asia. Instead of focusing solely on cost cutting, companies have to look at professional price management in order to stop losing money.

What pricing challenges and opportunities exist in South-East-Asia?


How can you get out of the cost dilemma?

Understanding purchasing criteria and the factors that influence customers’ buying behaviours in these markets allows for a segment-specific offer structure, taking imbalances in purchasing power and the growing middle-income consumers into consideration.

Unlock your company’s profit potential in South-East-Asia through insights and best practices tailored to the region’s unique challenges and opportunities.


During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore keynote session Unlock Profit Potential in South-East-Asia, Jochen Krauss will discuss developing market entry and pricing strategies, optimising pricing processes and designing innovative price and product structures.

Jochen Krauss, Managing Partner - Singapore, Simon-Kucher & Partners

Wednesday, February 26, 2014

Grow Sales & Profit Through Pricing

Even in a difficult economy, there is plenty of opportunity for more profitable pricing. 

Challenging economic times make it essential for companies to get more skillful in making and implementing pricing decisions and increasing customers’ willingness to pay.

How do you build a strong business case for price improvement initiatives?

What are the risks associated with a pricing initiative?

A new pricing initiatives’ success relies on properly identifying areas of opportunities, analyzing risks and challenges, and mapping the time to value.

Strengthen your company’s approach to pricing.


Using the framework from his book Daring Caution: The Executive’s Guide to Pricing Improvement, Bob Sherlock will show workshop attendees how to balance daring and caution in a sustainable effort to improve margins and profits.  Workshop attendees will learn how to plan and carry out an initiative that gets customers to recognize and pay for the value they receive.

During the PPS 25th Annual Pricing Workshops and Conference in Chicago workshop Sales & Profit Growth through a Pricing Improvement Initiative, Sherlock will review how to find opportunities for improved pricing and terms of sale, how to increase your company’s pricing power and how to improve your company’s process for making pricing decisions.

Monday, February 24, 2014

Price New Products with Value in Mind

Value pricing, unlike cost plus pricing, considers that customers care how much value they receive at a particular price not how much it costs companies to make it. 

Every year companies spend billions developing and launching new products from ‘revolutionary’ to ‘incremental innovation’ to catch up with competition.

When should pricing teams get involved with new product development? 


How can value pricing help minimize conflict between finance, marketing, and sales?

If pricing is an afterthought, there’s a higher risk of failure on new product launches. The failure can manifest in either lower than forecasted unit sales, lower than expected margin percentage, or lower than expected revenue.

Use a robust price setting process!

Companies with high pricing power share certain traits: a culture dedicated to pricing, sophisticated tools to quantify customer willingness to pay and customer price elasticities, and robust pricing processes.


Krishna Vankayala, CPP
Director Global Pricing
Schneider Electric, Singapore.
During the PPS 2nd Annual Asia-Pacific Pricing Workshops and Conference in Singapore keynote session New Product Pricing: Intersection of Sales, Marketing & Finance: Value Pricing, Krishna Vankayala, CPP will describe how Schneider Electric’s product refresh in the Japan market led their team to implement Value Based Pricing in its new product development process.

We hope to see you there!