Master Profitable Pricing in 5 Steps

Nr0 General      

Managing and optimizing prices is a never-ending task. The best pricing strategies ultimately maximize profit and revenue. To get to the point where you’re pricing with confidence, these five steps will help you determine and execute a pricing strategy that’s competitive and profitable.

N1 Analyze

A deeper understanding of your costs, your competitors, and your market is data that you’ll need to start planning your strategy, and then make informed pricing calls. Knowledge is power – which in this case, is the power to identify opportunities and outprice your competitors with data.

Nr2 Define

Once you’ve consolidated your data and customer insights, you can go ahead and create various price lists, set clear pricing and discounting rules, and develop transparent approval processes that align with your business goals. Setting price and discount rules can be done through a price management platform, allowing you to optimize multiple elements in real time.

Nr3 Execute

Once your standard and discounted prices have been defined, you should leverage them to create specific product, service, customer channel, and/or territory-specific pricing policies. Setting these granular pricing policies at different levels is crucial in staying profitable and keeping margins healthy.

Nr4 Strategize

You have your market and customer data analytics. You’ve defined your prices. You’ve leveraged your defined pricing processes into more specific policies. Now you can develop a pricing strategy that maximizes both profit and revenue based on your groundwork and careful planning.

Nr5 Improve

Centralized price optimization and management tools can help identify performance gaps and areas of opportunity, offering real-time insights and AI recommendations that keeps configuring, quoting, and pricing profitable.

Nr6 Conclusion

Now that you’re familiar with developing a pricing strategy on your own, you’ll need the tools and platform to execute it. With CLARITY’s tailored pricing and data integrations, including Pricefx’s leading price management platform and optimization engine, you’ll quickly be maximizing margins, finding more hidden wins, and closing better deals.