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PRICING ARCHITECTURE
Make more effective, accurate and profitable pricing decisions with the correct pricing structure. Design a pricing architecture that will enable your managers to effectively control pricing at a more strategic level, and deliver commercially sustainable margin improvements
CENTRALISED PRICING STRUCTURE An effective pricing architecture integrates a national list price across product hierarchies, channels to market and customer segments. Once an optimised pricing architecture is built (SKU by SKU), pricing managers are then able to control price rises and discounts at a product category level. Managers can enforce pricing changes on a group level with higher visibility and speed, rather than making manual changes on an individual product basis
Pricing Insight can help you avoid the time-consuming complexities in setting prices and discounts manually by SKU and by Customer on a transactional basis. Businesses with a long tail of products or have a large range of product variations (in brand, size or model) will benefit the most from implementing an efficient pricing structure
HOW TO BUILD AND MAINTAIN A PRICING ARCHITECTURE
Building a Pricing
Architecture
| - Building a national list price, using Value Based Pricing
techniques, requires the analysis of each SKU's 'value-in-use'
and 'value-at-risk' profile in forensic detail
- Once each SKU is optimised, you will be able to manage prices
at a product category level as oppose to each individual stock
level
| Pricing Architecture
Management
| - Efficiently manage your discount structure at
the higher levels of your product's hierarchy. This is done
after each SKU price has been optimised and relativites
between product categories determined
- Maintain pricing control and ownership through a centralised
pricing team. This is to protect the integrity of your national
list price from unauthorised discounts and ad-hoc price
overrides
- It is necessary to revise the list price (SKU by SKU) at least
twice a year in response to changes in competitors, business
cycle, costs and customers
| Pricing Controls
| - Pricing processes, roles and policies need to be documented
in order to gain consistency, continual alignment and
accountability of financial results
- A pricing policy document will detail access ownership and
responsibilities |
To see how Pricing Insight can assist with your pricing architecture or for further inquiries, please contact us on:
+61 2 9091 0226
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