Very few companies manage pricing as a discipline. Many people get involved with it, but no one owns the process. Decisions are made using incomplete or inaccurate information, opportunities are squandered, major threats ignored, and relationships with customers neglected.
Collinson Grant's approach is:
- to make a senior manager fully accountable for pricing - and measure his or her performance
- to confirm clear policies and procedures for setting and changing prices, ensuring that all involved understand their responsibilities and limits of authority
- to design incentives to increase profit, not just volumes and gross revenue
- to measure price performance and aid decision-making by using software such as Cognos' Powerplay.
We have developed sophisticated models for businesses marketing in different countries and in different currencies, and challenged the underlying beliefs and prejudices that affect all managers' decisions on pricing.