RAISING PRICES

In margin pressured industries, most managers feel powerless to raise prices as commodities demand continue to outstrip supply and input material costs continue to rise.  The key to achieving price premiums then lies in strategic pricing through margin optimisation

THE ISSUE WITH PRICE RISES 

A price rise is critical to ensuring healthy margins and protecting profits. A simplistic +3% increase with a sales letter of explanation and an apology is the standard approach to communicate an impending price rise to customers 

What happens next is the nightmare for all CFOs. The List Price is raised and then immediately dealt back through special discounts and rebate arrangements. Or worse still the customer rejects the price rise and switches to the competitor. The price rise can actually send earnings backwards


HOW CAN PRICING INSIGHT HELP YOUR BUSINESS

Margin Expansion Planning (MxP) is Pricing Insight's structured approach to help you build gross margins across the product or service portfolio using Value Based Pricing principles. MxP is supported by a number of discrete business models that can be readily integrated into your go to market planning

These margin protection plans include:

 -  Volume rebate management programs
-  Discount control systems
-  Customer pricing menus
-  SKU analytics
-  Customer price segmentation


CONTACT US

 To find out how you can execute successful prise rise and grow earnings, call Pricing Insight for a confidential discussion on:
+61 2 9091 0226