Effectively Executing Pricing Strategy: Pricing Management

APPROACH

Monitor’s pricing management approach ensures consistent execution of the pricing strategy through careful analysis of transaction prices and discounts, coupled with the redesign of key pricing processes, decision rights, and policies.

  • Pricing management enables the execution of an effective pricing strategy by:
    - Diagnosing unmanaged price variability
    - Designing new pricing policies
    - Redesigning key pricing processes
    - Changing business practices to support new processes
  • Creates more consistent prices and a stable market environment, and leads to increased margins

RESULTS

Pricing management yields near-term impact as unintended discounts are eliminated, generally resulting in a 10 to 15 percent margin improvement.

With this system I know I increased yield by $57M+ this year due to price improvement alone.”
- Capital Equipment Manufacturer who saw a 14 percent increase in total profit contribution within one year

“Reduction in transactional profit leakage resulting in $20M annual direct margin enhancement.”
- Flooring Manufacturer

TOOLS

Price Analytics and Cost to Serve
Diagnoses unmanaged price variability

Pricing Policy
Designs new pricing policies

Process Mapping and Decision Rights
Redesigns key pricing processes and changes business practices to support new processes

Execution and Performance Tracking
Ensures effective execution and monitoring of pricing management structure