Companies need to manage pricing strategies with the same rigor that they apply to manufacturing costs and other operating areas. Pricing impacts business performance at the highest operating level in three basic ways: it can drive margin pressure, contribute to customer attrition or adoption, and force companies to “leave money on the table” when products and services are priced too low for specific customer segments.

Today, executives across a broad range of industries are dealing with pressures from a number of sources across the enterprise value chain that include:

• Suppliers: "The price of fuel escalated another 15%, increasing our transportation costs as a result."
• Local and global competitors: "Our competitor just launched a better product at the same price as our flagship product, so we’re dropping our price to keep current customers"
• Customers: "We had to drop prices in Account 'X' because they found out we were offering 20% lower prices to Account 'Y'"

If your company employs a reactionary approach to pricing pressures, it can become costly and precarious to your bottom line. We have found that firms that successfully deal with these types of pressures take a proactive approach, anticipating market changes to optimize pricing models and reaping enormous benefits as a result.

At Kalypso, we have worked with clients on creating pricing strategies, processes, and structures that have yielded impressive results with pricing model improvements that correspond with the appropriate mix of revenue drivers such as volume, product mix, and net price.

Our team of experts has significant experience working with companies of all sizes and industries on pricing strategy and leadership projects. While there is no easy way to determine the best pricing strategy for all products, we can assist you with creating guidelines and pricing models to optimize revenues. We can help you:

• Assess and refine your existing pricing strategy
• Establish pricing objectives and guidance at an enterprise and sector level using a solid fact base of customer and competitor information
• Segment the market to determine appropriate pricing optimization models
• Implement improved pricing reports and monitoring processes
• Set performance guidelines and profit margin targets with executives
• Orchestrate a coordinated plan of action, including a pricing roll-out strategy, metrics and review processes, and changes in incentive structures
• Manage strategically with appropriate policy, rules and options which allow market agility while ensuring organizational resolve