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What is a World Class Pricing Organisation and Why You Should Focus on Becoming One

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August 16, 2020

What is a World Class Pricing Organisation and Why You Should Focus on Becoming One

So many businesses struggle with pricing. Most companies grapple with setting prices on new products, establishing pricing for new customers, reviewing pricing for existing customers, or understanding their relative market pricing position.

Companies often undertake customer surveys that often provide direct feedback that their pricing is inconsistent, poorly administered, or, worse yet, incorrect between quote and invoice!

It is also common to observe the internal conflict between departments with pricing and its impact on profitability.

Well, there are also some very successful organisations that don’t have these issues. These companies have focused on becoming World Class Pricing Organisations. Just like you have world class manufacturing organisations or world class service providers, organisations can dramatically improve their overall capabilities that lead to the development and execution of their pricing decisions. But what does that mean?

World Class Pricing Organisations have developed a passion for pricing based on a commitment to value in the hands of the customer. They have highly integrated their IT systems and have been innovative when confronted with pricing challenges. Best of all, when these organisations undertake pricing initiatives, they get large financial benefits in return for their efforts.

Two companies that can be considered as world class pricing organisations are Starbucks and Microsoft. These are highly profitable companies with widely recognised brand names. But they did not just start off that way! Over time and in their respective markets they have faced their challenges around pricing and have overcome them to become highly profitable industry leaders. And the key to their ongoing success is their never ending and unyielding commitment to the pursuit of world class pricing practices.

Unless you are a charity, every organisation providing goods or services needs to develop prices. Regardless of whether you are in a business to business (B2B) or business to consumer (B2C) organisation, you still need processes and procedures that support the development and execution of the most critical customer-facing detail you provide… your prices!

If you would like an objective and expert opinion on where your organisation stands on how it produces and obtains its prices, then contact the pricing experts at Pricing MD.

That first step will launch you on your way to improved margins and profits through a better understanding of your pricing practices and start your adventure towards becoming a world class pricing organisation.

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