Pricing and Profitability Management: A Practical Guide for Business Leaders
Pricing and profitability management may be the most powerful lever that managers can pull to give their businesses a competitive edge—in any economic climate. In fact, studies show that 90 percent of pricing investments meet or exceed return on investment (ROI) expectations. Put another way:for any dollar invested in performance improvement, the greatest return comes when it is invested in pricing.Yet despite its proven benefits, many companies still lack the internal capabilities, organizational structure, and information to take advantage of this critical function.Pricing and Profitability Managementtouches virtually every corner of a business—Marketing, Sales, IT, Operations, Finance, Accounting, and Executive Leadership. The more an organization can focus on setting and achieving profitable prices, the better it will be able to respond effectively to changing customer, competitive environment, and market conditions. When properly implemented, the strategies discussed in this book can dramatically improve how a company views and operates its entire business.This book demonstrates how a business can apply one of the most promising strategies available today to improve its performance. The experts from Deloitte Consulting LLP present a holistic, comprehensive framework that will enable companies to integrate the six essential pricing competencies (pricing strategy, advanced analytics and price setting, price execution, organizational alignment and governance, pricing technology and data management, and tax and regulatory effectiveness) into a cohesive program that can build a sustainable, competitive advantage and realize gains far beyond what can be achieved with a singular approach. The book offers a comprehensive introduction to effective pricing and profitability management and serves as a reference work for business leaders, professionals, and students who want to sharpen their capabilities and deepen their understanding of this key strategic discipline. It will change the way you think about pricing.