Like us on Facebook and get access to daily updates on ITDA

Follow us on Twitter for updates from ITDA consultants and experts

Join us on LinkedIn to extend your network of trusted contacts
The Pricing Journey – The Evolution of Approach and Execution as Organisational Pricing Capability Develops PDF Print E-mail
User Rating: / 2
PoorBest 

By Prof. Charles Dennis

Abstract

An organisation’s approach to Pricing can be seen as a competency in the sense that it is a combination of skills, behaviours and the application of knowledge. As the efficiency and effectiveness of pricing decisions improve, then a range of indicators highlight a more thorough, considered and generally more successful approach. Fewer mistakes are made, results are more visibility linked to previous actions, and implementation becomes quicker and more comprehensive. This paper explores some of the characteristics of a better approach to pricing, and how behaviours change as an organisation develops its pricing skill set using our model that we name the Pricing Journey (Figure 1). In six separate stages, it will describe how knowledge, measurement techniques, decision making methods, technology utilisation and training needs all change, as an organisation travels on a journey toward pricing excellence.

Keywords: Price, pricing strategy, pricing policy, pricing journey, organisational pricing capability

Citation: The Margin2 Pricing Partnership at CREAM – White Paper, 2010