The right pricing consultant can dramatically accelerate your price optimization efforts. They can streamline your pricing structure, jump start a pricing analytics program, and built your company‘s overall level of pricing capability through process and system enhancements.

Speaking as a pricing consultant, there are a few things that I wish many of my clients understood. These insights would make my job easier and accelerate their progress. I’m sharing my thoughts here to help you along the path to profitable growth.

Good execution will have a meaningful effect on your company‘s valuation.

Strategic Pricing: 9 Ways To Improve Profit Margin

True Strategic Pricing isn’t about simply charging more money In fact, that’s a very risky long term value creation lever. The market eventually figures out what you’re doing.

Pricing leaders know that you need to be as good at creating value as your are at claiming it.

For a sustainable margin lift, look at these case studies exploring how to reshape the value you offer customers – and cost of delivering that value – to create a competitive advantage.

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Using a Pricing Consultant to Jump Start Your Pricing Strategy

As a senior consultant, My first question to any CEO who wants me to improve their business isn’t about their willingness to pay my consulting rate. It’s much simpler:

Are you serious about leading a pricing change?

Because if you’re just doing this to impress your board of directors, we have easier consulting service offerings that will get them off your back. But if you’re truly interested in unlocking a faster path to profitable growth, we should talk further.

But I need you committed to the process.

While a pricing transformation may start as a commercial project, an effective pricing change needs the support of many team members. We’re going to need to understand your customer segment strategy and current market share within each niche. The marketing team will want to adjust their operations to support margin improvement. The operations team may need to support new logistics and service bundles. Manufacturing may need to support different priorities.

At it’s core, an effective pricing transformation is about leadership. We’re going to analyze your business, set priorities, and identify an ideal price strategy and pricing structure to rally the team around. After that, the challenge becomes execution. Will they follow us?

And that’s where we’re going to need your full support.

The tactical details of the pricing program are straightforward; we are the pricing expert to help you through this change. As a team, we will build a pricing model. There will be questions about cost accounting and transfer pricing systems (transfer prices between business units). We’re going to test price elasticity by changing prices of certain items and watching the shift in revenue. These are all things we’ve helped retailers, manufacturers, and distributors solve before.

In the final analysis, the client‘s executive leadership support and alignment with your business culture are the two most significant client success factors in a pricing consulting engagement.

Want to know more? Check out our pricing consulting services overview..