Seizing the Pricing Opportunity Before Someone Else Does – The PricingBrew Journal Interview of David Bauders
In this conversation, David Bauders, SPA’s Founder and President, discusses some of the typical pricing problems he’s encountered working with hundreds of distributors and manufacturers around the world. Highlighting the common barriers and hurdles that must be overcome along the way, David provides a number of insights and tips for generating results while aligning to the organization’s appetite for change and innovation. Some of the key points and comments from the audio-interview follow.
“What are the typical pricing problems that SPA helps companies solve?”
- Development of an effective pricing process
- Implementation of pricing analytical tools
- Development of an effective pricing metrics and reports
- Implementation of pricing training
“Data shines light on real issues”
SPA’s fast process to extract 12 months of transaction data provides valuable insight into where a company’s real pricing pain points are. Examples of insights include:
- What customer accounts are under-performing?
- What products are most/least price sensitive?
- Does the sales force capture price premiums where available?
- Does the existing pricing process balance accountability with flexibility?
“Minefields to be aware of in pricing improvement projects”
Setting realistic expectations with all stakeholders is key and success is impacted by a company’s culture, processes, and analytical capabilities. Examples of the major areas for concern include:
- Project must be given top priority and staffed, supported accordingly
- Project leader/champion must be a strong leader/influencer
- Overcoming pushback from Sales force on adoption of pricing decision support tools
- Overcoming fear that customers will be put off by use of a pricing tool
- Accountability and incentive programs must be in place and enforced
Click here to listen to the complete interview.
(Access to this subscriber-only PricingBrew interview is provided compliments of SPA for a limited time.)
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