Pricing consulting
Our Pricing Management Process (PGP) consists of two phases:
- Designing the pricing strategy through the initial strategic configuration of an analytical tool, and
- Operating the tool to make day-to-day pricing decisions (to learn more, click here).
Initial strategic configuration
During the initial configuration of our platform, your business’s new pricing strategy is designed. The scope is fully modular and tailored to your business’s specific needs:
1. Alignment
2. Portfolio analysis
3. Customers analysis
4. Value communication
5. Deployment
1. Alignment
- Initial assessment of your business’s pricing strategy to determine the scope of the consulting process.
- Education and training of the executive team to align concepts and establish a common language.
2. Portfolio analysis
- Competitive analysis to ensure consistency between overall price levels and competitive positioning.
- Market segmentation to identify groups of customers with common consumption occasions and needs.
- Product development that meets the needs of each target segment, based on the attributes they value.
- Value maps to calculate solution prices, based on the price-value relationship of market alternatives.
- List price menu by product/service to proactively and transparently manage the portfolio.
- Price elasticity analysis to project the volume impact generated by price changes.
- Portfolio revision to adjust current prices, eliminate redundant offerings, and launch new solutions.
- Incremental analysis (revenues and costs) to ensure the profitability of the new portfolio and maximize its competitiveness.
3. Customers analysis
- Customers typification and definition of the criteria they must meet to qualify for discounts.
- Commercial discounts calculation based on the expected profitability per customer and portfolio turnover.
- Discounts menu to ensure a transparent and proactive relationship with distributors or direct customers.
- Customers revision to improve competitiveness with key clients and avoid leaving money on the table.
4. Value communication
- Quantitative tools to be used as a sales argument for the most rational customers.
- Sales scripts to manage all types of customers—price-focused, value-focused, relationship-focused, and convenience-focused.
5. Deployment
- Hypothesis validation to confirm the assumptions defined during the initial strategic configuration.
- Fine tuning of the platform's parameters based on market research results.
- Change management to ensure proper implementation of the tools and suggested changes.
- Ongoing follow-up and support to address questions throughout the implementation process.
Platform operation
Our platform enables autonomous management of your business’s pricing strategy, allowing you to make concrete and profitable day-to-day decisions. Each time it is updated, it provides the optimal price for each solution in the portfolio and the recommended commercial conditions for each customer. Additionally, it projects the financial results of closing the identified gaps.
With PGP, your business can easily identify:
With PGP, your business can easily identify:
- Low-priced solutions where there is an opportunity to improve margins,
- Overpriced solutions that put your portfolio’s competitiveness at risk,
- Opportunities to launch new solutions to serve new customer segments,
- Opportunities to streamline the portfolio by removing redundant solutions that don’t create value,
- Over-rewarded customers who could damage market prices, and
- Under-rewarded customers who might stop buying your solutions.
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FAQs
What does a typical pricing consulting project include?
The scope of our pricing consulting process is modular and tailored to the specific needs of your business. The five modules are:
- Alignment, where an initial assessment is conducted and the executive team is trained in pricing and revenue growth management concepts.
- Portfolio analysis, in which the list price strategy is designed for each solution your business sells.
- Customer analysis, to design the discount structure your customers can access, applied on the list prices of your solutions.
- Value communication, where sales scripts and quantitative tools are developed to help your sales team increase customers’ willingness to pay.
- Deployment, during the first two calendar months to validate hypotheses in the field and provide support to your team.
In which industries do you have experience applying pricing?
Since 2007, we have worked across multiple industries and economic sectors. Our methodology applies to businesses that sell products and services and operate in both consumer (B2C) and industrial (B2B) markets.
What benefits can be expected from pricing consulting?
Through improved margins, recovery of lost sales, and the launch of new solutions, our clients see their gross profit increase by 3% to 15%* annually.
*This refers to an increase in gross profit in absolute terms, not gross margin points.
*This refers to an increase in gross profit in absolute terms, not gross margin points.
How is the impact of the consulting measured?
The main performance indicator in a pricing management process is the increase in the business’s gross profit. To ensure objective measurement, the financial results of products/customers with adjusted prices and discounts are compared to those where recommendations were not followed. Other process indicators include incremental changes in units sold, net revenue, margins, among others.
How long does a typical project take?
Depending on the modules included in the project scope, the initial strategic configuration phase (consulting) takes between 8 and 24 weeks.