Deloitte in the News
The Harvard Business Review Chinese Edition Published Monitor Deloitte's Article on Strategic Pricing
While companies can use different strategies to achieve profitability, but almost all successful pricing strategy includes three principles: being proactive, value-based and profit-driven.
Monitor Deloitte recently published an article in the Harvard Business Review Chinese edition. The article, "Growing Profitability – the Three Principles of Strategic Pricing" was co-authored by Tom Nagle, the world's renowned guru in strategic pricing, was named as the "Father of Strategic Pricing" and also the founder of the Strategic Pricing Group under Monitor Deloitte and Jiaming Li, a Director of Monitor Deloitte who leads Deloitte China Pricing and Profitability Management consulting practice.
In this article, the authors discuss the new pricing challenges faced by Chinese companies under the economic "New Norm" as they seek upgrade of offerings, expand into overseas markets and increasingly leverage e-commerce channels. By reviewing the common pitfalls of pricing, the authors introduce the best practice of Strategic Pricing and the three underlying principles for success: being Proactive, Value-based, and Profit Driven. Companies should manage customers' price and value expectations proactively, rather than setting their prices in reaction to the existing expectations. They should understand the non-price benefits that customers are looking for, design their operations to deliver those benefits, and think about pricing more creatively than just covering costs and a margin. The authors also share the key considerations for executing the price strategy in establishing an organization for profit-driven pricing. These insights were demonstrated by live examples and case studies of leading practices across chemical, transportation, automotive, healthcare industries in China and globally.
Please click here to read the article in Chinese or download the article in English.