A well-known, highly-valued brand? Check. A strong market position? Check. A talented leadership team? Check. A competent sales team with strong customer relationships? Check. You’ve seemingly got all the pieces in place, so why’s it so hard to drive profitable growth?
Today’s business environment is good, but not great. Low single-digit growth has been obtainable, but it’s taking more and more effort to capture it. The risk of change looms larger than its reward, as investments in growth continue to yield underwhelming results. Why?
Odds are, it’s your pricing!
There is no lever more powerful than price to drive profitable growth. But this power works both ways. If deployed ineffectively, pricing can just as easily be a drag on growth…or worse, wipe it out completely. Today’s challenges put an exclamation point on the need to get pricing right:
Unrelenting margin pressure. After many years of controlled costs, more suppliers are raising prices and labor cost pressures are rising as well. But where can you take price in a competitive market? For most companies, price increases typically yield far less than planned and are burdened with concerns about putting key customers at risk.
Growing price variability. Pricing has grown more complex and inconsistent. You’ve thrown more time and resources at it, but the problem persists. Many companies in this position are now facing customers who’ve grown frustrated with the buying process and sales reps who’ve lost confidence in the pricing. It’s a vicious cycle as this angst breeds more complexity and inconsistency.
Fear of the great Ecommerce unknown. If today’s problems weren’t enough, Ecommerce looms large on the (immediate) horizon. B2C expectations are moving into the B2B world, and increased price transparency will threaten profitable customers. You’ve watched major corporations in other industries buckle under this pressure, but how do you get out ahead of it?
Chances are you know all about these challenges, you’re living them every day. Many companies in your industry have their conference rooms littered with special task forces trying to combat these pressures. But what if you could tackle these problems with one effort? What if you could cut through all this risk and uncertainty and get back to driving profitable growth? You can…if you fix your pricing.
Let’s be honest, fixing your pricing is hard. Making it stick is even harder. But it can be done. It has been done. And huge benefits await. And like most problems in life, the longer one puts off addressing it the more difficult it becomes to fix.
The right approach – one that combines pricing expertise, robust analytics, and a focus on driving adoption – makes all the difference. How do we know? Because we just helped a leading products company drive 240 basis points of margin, all without increasing risk.
Stay tuned for my next blog in the series that will discuss the “how” behind your elusive pricing fix.