Pricing and Commercial Strategy
Elevate the game plan
New competitive entrants, sophisticated procurement departments and slow economic growth are conspiring to pressure profit margins like never before. For companies intent on preserving—and growing—margins, it is imperative to adapt their game plan.
Pricing & Commercial Strategy needs to be a key element of an organisations winning strategy. As an important lever for growth, it offers an under-leveraged and often neglected opportunity for substantial and sustained revenue and margin improvement. Just a few points improvement in price realisation, driven by a more strategic approach and better execution, can translate into substantial enhancement of an organisation’s profitability.
How we can help
Monitor Deloitte helps clients address the spectrum of commercial pricing strategies, processes and capabilities, aligning them with the organisation's business, marketing, customer segmentation and channel strategies. Starting with the drivers of customer value and layering on transaction-level analysis and insight, we help companies disaggregate their business so they can see its many parts, identify the economic value of each product and customer and devise ways to communicate and deliver that value to customers at prices that meet profit objectives.
About our services
Enabling our clients to actively manage, change, and define the way they deliver value to their customers, we help them build five interrelated capabilities:
- Transactional management that provides guardrails to guide proper execution of the intended strategy
- Price and discount policies so prices correspond with the value delivered and so discounts and provision of services are properly governed
- Value communications and framing to influence the customer and present the value story in the most compelling manner
- Segmented price and offer structure so prices are based on customer willingness to pay or perceived value and so offers effectively meet the requirements of each segment
- Profitable growth strategy where the previous four capabilities culminate in an overarching ability to redefine the business model so it is adaptable to changing market conditions and new customer needs.
We use a suite of more than 20 diagnostic and analytical tools to quickly assess the size and nature of the pricing opportunities available to the organisation to allow for an informed dialogue on where and how to invest.
- Achieve rapid return on investment by identifying and pursuing targeted pricing strategies
- Implement processes, policies, and operating constructs that align with revenue and profit growth objectives
- Increase transaction profitability through active management of pricing execution and improved controls
- Assess the linkage between cost-to-serve and pricing levels in order to build new offer designs that lead to profitable deals
- Develop the sales-ready content and selling tools that enable a sales force to have effective, value-based conversations
- Redesign the business model to better address the needs of a rapidly changing marketplace.