Market Edge Advisor April 2018

    Margaret McGuire

    Are customers taking the Pricing Lever from your control?

    The day you understand the value you create is the day you stop giving discounts.

    Does your organization have the required commercial capabilities to raise prices?

    The strengthening global economy is driving the pace of price increases in the specialty chemicals and materials sector (see attached timeline of selected announcements).

    However, not all businesses have the required commercial capabilities to raise and hold prices effectively.

    Our experience with a range of global, category leading B2B companies has shown the following specific capabilities are critical to raising prices at the right time and retaining increased margins.

     

    1. Timing – knowing when to raise prices and leading increases from a position of strength
    2. Modeling – using dynamic value maps and scenario planning to model competitive response and associated impact on volume and margins
    3. Commercial discipline – implementing price increases clearly while minimizing exceptions and backsliding
    4. Price performance management – rigorous post increase analysis to ensure margin, volume and working capital effects are delivering the targeted increase in cash flow

    For examples of the concepts and tools above in practice, contact help@mkt-edge.com

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