Business Outcomes On Your Terms...
Peak Pricing Performance, Maximum Margin & Revenue Results.
Phone: + 61 2 9091 0226 Email: enquiry [@] pricinginsight.com.au
My name is Ron Wood, Director and founder of Pricing Insight.
I started Pricing Insight in 2007 after 15 years in commercial and pricing strategy roles within Australian, Fortune 500 and private equity owned businesses. I wanted to create a service to help business executives get real world advice and support to make more profitable pricing decisions.
Pricing is often described as an “art.” All great art requires technique, inspiration and focus. These elements linked together create incredible value. The most important element of all in defining and selling value is a belief in the power of your product or service to help your customers obtain value.
To unlock your pricing power, you need a clear understanding of how you can help your customers:
- improve their profitability,
- lower the cost of doing business or,
- reduce their risk of exposure to unforseen costs,.
We have designed breakthrough value pricing tools and systemic ways of thinking to help you determine your value and build a belief system to maximise pricing and contract negotiation outcomes.
To implement these value pricing toolsets and thinking systems in your business please call + 61 2 9091 0226 or use the contact us link and I will respond to your enquiry.
Why do we focus on pricing strategy?
Pricing is your most powerful profit lever for generating earnings growth. It is also your greatest earnings liability if not managed correctly.
- Your competitors, both local and foreign are dropping price to win market share
- Your customers employ professional buyers or 3rd party procurement consultants to drive prices down and extract more value from you
- Your sales and marketing teams are challenged to address customer requirements using traditional sales and marketing techniques.
- The revenue line may be holding, but margins are compressing and earnings growth is in decline.
We work closely with businesses across Australia and overseas
Pricing Insight work with a range of industries from manufacturing to professional services. In discussions with the CEO & executive leadership team, we find there are 3 crucial questions we need to work on.
- Is there a way of developing a pricing strategy that moves focus from volume pursuit to value creation?
- Can your business pricing strategy be optimised to find 2-5% points of margin improvement driving 10-20% points of earnings growth?
- What is the $ EBIT size of prize for 1, 2 or 5 % points of margin gain? How does this payback compare with current projects?
Pricing Insight work with you to scope, define and build the business case
Margin pressures continue to grow
Businesses are confronted with a range of issues that limit the ability to drive margin expansion and earnings growth:
These issues include:
- Cost Plus pricing culture and pricing setting methods
- Undefined value proposition to each market segment
- Unstructured pricing architecture leading to missed margin opportunities
- Reactive and uncontrolled price overrides and discounts to win or retain business.
- Management misalignment on the right strategy and tactics to guide the business to profitable earnings growth through the business cycle.
Refocusing your sales, marketing and finance teams to become a merchants of value instead of vendors of volume based sales will create a marked turnaround in the fortunes of your business.
The most powerful profit lever in your business is pricing. A structured and focused effort to drive revenue and margin expansion is the primary opportunity for immediate and explosive earnings growth in your business.
Where should you start your pricing strategy and business turnaround program?
No doctor should operate without a diagnostic analysis of the patient, and no business improvement project should proceed without a preliminary analysis of current situation, causal drivers, blind spot opportunities and sources of quick wins and immediate cash flow generation.
Subsequent to an initial diagnosis, a structured pricing improvement program can be undertaken to drive capability, immediate outcomes and longer term market changes to rebuild profitability back into a business and generate earnings growth.
Well known Fortune 500 companies such as GE, Caterpillar, Parker Hannefin, Dow chemical and 3M have all undertaken substantial investment in pricing strategy development with great levels of success.
5 organisational outcomes
The benefits of the Pricing Insight approach include the following 5 organisational outcomes which are directed at making any pricing initiative sustainable, easily replicated and scalable across the business:
|Protect & Grow Earnings ||Price rise strategy|
Long tail price optimisation
|Build Team Trust ||Generate cross functional understanding|
Build team alignment
Create consultative management style
|Empower Your Team||Build the knowledge, understanding and skills to implement new value based pricing techniques|
| Transform Culture|
Move from cost plus pricing to value based pricing culture
Build confidence in value pricing, marketing selling and negotiation
|Make An Impact ||Create a long term sustainable business strategy to drive your company’s growth into the future|
Pricing Insight help you:
- Implement a successful price rise programs
- Undertake a customer value driver analysis to negotiate more profitable contract pricing
- Analyse your current portfolio of products or services and generate immediate pricing improvements
- Train your team in value based pricing and contract negotiations
- Evaluate current pricing practices / capabilities and publish a pricing quick wins plan and longer term strategic roadmap
Business models today are under threat from globalisation, aggressive competitors and more demanding customers. Pricing Insight exists to help people create an adaptive business culture that is ready to change beliefs and behaviours to remain competitive. I look forward to working with you and helping your business build more value into your customer negotiations and your P&L.