Return to Marketing Process Excellence

Pricing Strategy

Pennog can help your business to extract the most value from pricing transactions, identify where value pricing is viable and provide your business with protocols to introduce and maintain value- or solution-based pricing processes that engage marketing functions and manage day-to-day selling decisions.

 

Pricing StrategiesWith the exception of luxury goods markets, Price is always the most influential criterion in the buying decision. However, many businesses still operate price setting processes based on a simple cost-plus, supply/demand or competitor-orientated pricing processes. This is usually because value-pricing or solution-pricing approaches are less well understood or are considered to be difficult to manage. Whilst simplistic pricing strategies can be entirely appropriate for mature, commoditised markets, the danger of applying cost-plus, supply/demand or competitive pricing processes in speciality or service-demanding markets is at best a failure to fully capture the value available and, at worst, an irrecoverable run towards commoditisation and a permanent loss of profit potential.

 

Recognising where value pricing or solution pricing is an appropriate strategy is therefore an important insight for any business. Implementing a value pricing strategy can often be a very effective break on profit erosion and a source of untapped value. 

 

Pennog can help your business understand which customer segments derive the greatest benefit from your company’s offer and how they value of these benefits versus the nearest competitive offer.

 

Pennog has many years of commercial experience in developing and implementing B2B pricing processes for major global businesses. Protocols for identifying pricing potential, developing and communicating pricing strategies and keeping control of the ultimate nett pocket price can be developed for your business. Call Pennog Limited on +44(0)1484 443001 or contact us using our easy contact form and we can tell you more about how our expertise can help your business demonstrate excellence in pricing.