The Sticky Situation
You Want to Be In
insights from
2
Annual price planning processes
usually focus on finding the perfect
price for every product.
3
BUT…
…all of that effort goes to waste if
you can’t make your prices stick.
4
Many price increases get whittled
down through negotiations and
discounts given to customers.
5
A 1% price increase
can result in an
11% profit increase.
6
You need to make those
price increases stick!
Here are 5 steps to get you there.
7
1. Tie Price Increases
to Value Creation
8
Tie price increases directly to a
product or service value.
Optimize this strategy by working
on increasing value months...
9
Document and communicate how
your company creates value.
Use this as support for
the price increase.
10
2. Build Realistic Price
Increase Goals
11
Many companies set price increase
goals just because they expect a
price increase every year.
12
This builds unrealistic expectations,
which creates an environment in which
price increases are expected to fail.
13
Setting reasonable expectations
breeds confidence and a culture of
pricing improvements.
On the other hand...
14
3. Strategically
Segment Customers
and Product Lines
15
Many companies use a
“peanut butter” approach, which applies
the same price increase to all customers
and products.
It ...
16
Careful price increase planning is done
customer-by-customer and
product-by-product.
It takes more effort but
pays off ...
17
4. Measure and Analyze
Regularly and Often
18
DON’T
just implement price increases
and then try to connect the dots
when they fail months later.
19
Yes, measuring the impact of
price increases is hard.
It requires looking at actual price
achieved, customer-by-custome...
20
But you can’t afford to skip this step.
It’s crucial to the success
of your price increases.
21
5. Provide Incentives
to Motivate Your
Sales Team
22
Successful price increases depend on
your sales team and how well they
convince customers to pay more.
23
If you only incentivize sales reps on:
volume, revenue, or margin,
they will focus only on these objectives.
24
Instead, include your updated pricing strategy
as part of their incentives.
Then they’ll commit to sticky prices.
25
Need a better way to plan your
annual price increases and
regularly analyze their success?
26
Start Planning Your Sticky
Price Increases Today
KiniMetrix helps companies:
1. Identify the target customers for price...
GET 30 DAYS FREE
Sign up for a KiniMetrix Free
Trial today to deploy tomorrow.
thekinigroup.com
WHAT IS KINIMETRIX?
28
KiniMetrix is the “last-mile” of Business Intelligence.
The cloud-based software helps you make the...
WHAT MAKES KINIMETRIX DIFFERENT?
29
Typical deployment time: < 24 hours
Accessed via browser – “zero footprint” with no in...
of 29

Prices With Staying Power: The Sticky Situation You Want to Be In

Price increases have a significant impact on your bottom line, but how do you make them stick? Follow these 5 steps to sticky and profitable price increases. Read the full post here: http://thekinigroup.com/blog/sticky-price-increases/
Published on: Mar 4, 2016
Published in: Data & Analytics      
Source: www.slideshare.net


Transcripts - Prices With Staying Power: The Sticky Situation You Want to Be In

  • 1. The Sticky Situation You Want to Be In insights from
  • 2. 2 Annual price planning processes usually focus on finding the perfect price for every product.
  • 3. 3 BUT… …all of that effort goes to waste if you can’t make your prices stick.
  • 4. 4 Many price increases get whittled down through negotiations and discounts given to customers.
  • 5. 5 A 1% price increase can result in an 11% profit increase.
  • 6. 6 You need to make those price increases stick! Here are 5 steps to get you there.
  • 7. 7 1. Tie Price Increases to Value Creation
  • 8. 8 Tie price increases directly to a product or service value. Optimize this strategy by working on increasing value months before a price increase goes into effect, not at the same time.
  • 9. 9 Document and communicate how your company creates value. Use this as support for the price increase.
  • 10. 10 2. Build Realistic Price Increase Goals
  • 11. 11 Many companies set price increase goals just because they expect a price increase every year.
  • 12. 12 This builds unrealistic expectations, which creates an environment in which price increases are expected to fail.
  • 13. 13 Setting reasonable expectations breeds confidence and a culture of pricing improvements. On the other hand...
  • 14. 14 3. Strategically Segment Customers and Product Lines
  • 15. 15 Many companies use a “peanut butter” approach, which applies the same price increase to all customers and products. It rarely works.
  • 16. 16 Careful price increase planning is done customer-by-customer and product-by-product. It takes more effort but pays off in the long run.
  • 17. 17 4. Measure and Analyze Regularly and Often
  • 18. 18 DON’T just implement price increases and then try to connect the dots when they fail months later.
  • 19. 19 Yes, measuring the impact of price increases is hard. It requires looking at actual price achieved, customer-by-customer and product-by-product.
  • 20. 20 But you can’t afford to skip this step. It’s crucial to the success of your price increases.
  • 21. 21 5. Provide Incentives to Motivate Your Sales Team
  • 22. 22 Successful price increases depend on your sales team and how well they convince customers to pay more.
  • 23. 23 If you only incentivize sales reps on: volume, revenue, or margin, they will focus only on these objectives.
  • 24. 24 Instead, include your updated pricing strategy as part of their incentives. Then they’ll commit to sticky prices.
  • 25. 25 Need a better way to plan your annual price increases and regularly analyze their success?
  • 26. 26 Start Planning Your Sticky Price Increases Today KiniMetrix helps companies: 1. Identify the target customers for price changes 2. Measure price performance 3. Create successful incentive programs Click here to see how KiniMetrix can do this for you.
  • 27. GET 30 DAYS FREE Sign up for a KiniMetrix Free Trial today to deploy tomorrow. thekinigroup.com
  • 28. WHAT IS KINIMETRIX? 28 KiniMetrix is the “last-mile” of Business Intelligence. The cloud-based software helps you make the leap from traditional BI platforms to generating actionable insights for margin improvement.
  • 29. WHAT MAKES KINIMETRIX DIFFERENT? 29 Typical deployment time: < 24 hours Accessed via browser – “zero footprint” with no installation required on local computers Typical impact on margins: 2-3% realized improvement within 12 months of implementation Robust: tested and deployed in environments with hundreds of millions of transactions 24 hours Award-winning, Cloud-based, SaaS solution

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