Mid-market price setting tends to be relegated to existing personnel having cross departmental responsibilities. As a result of fragmented focus, no internal transfer price management existed, product vs. part strategies were misaligned, and price deployment was unbridled in the hands of regional sales leadership. Further, product Innovation continued the historical path, but quality perception problems eroding true value in the marketplace.
Rather than a complete an immediate organizational and process restructure, we embraced the lack of pricing management capability, and rogue sales discount behavior, and provided guardrails in the process to constrain non-accretive actions. Further designed a digestible and trackable improvement plan, with a phased sprint approach to more slowly increase adoption and enhance top and bottom-line performance gradually.
Through price sensitivity analysis, designed pricing scenario models with commensurate Pricing Ladders to demonstrate market and value appropriate discount levels. Further created Manufacturer, OEM, Dealer,and End-Consumer price bands and commensurate value communication plans.
Lastly, created competitive intelligence and product value mapping templates to forecast financial impacts across the entire business;thus, determining where, when, why, and how to win….
