PricingBrew

Insights & Tips

Already a subscriber? Login

Become a subscriber and unlock an information arsenal focused on making your pricing efforts more effective.

A Poor Excuse To Avoid Strategic Pricing

When we talk to companies about becoming more strategic, their initial response is almost always the same:

We would love to, but we just don’t have the time.

Frankly, that’s BS.

Every B2B pricing team is busy with tactical work. Nearly all of them feel overworked and understaffed. But some of them — the ones that are ultimately the most valuable to their companies and the most successful in their careers — find a way to make time.

How do they do it? Here are seven steps you can follow to find extra time in your schedule to prioritize strategic work:

1. Dedicate time on a regular cadence. Start by finding just one hour per week when your team can focus on strategic work. Then don’t let anything intrude on that time.

2. Recognize that people will find time for the things they want to do. Tell your team about the strategic work you want to do and why it could be so important for the company. When people understand the potential benefits for the organization — and for their own careers — and how interesting the work will be, it will be easier to find time.

3. Put everything on the table and redline the busywork. Every team wastes time doing things they don’t really need to do — often they are only doing those things because they always have. If something isn’t absolutely essential, put it on the chopping block.

4. Ensure the team feels secure to present ideas. No one will tell you they are wasting time doing things that aren’t necessary unless they feel absolutely confident that their jobs are secure. Make sure your team knows they are valued and respected, that you value their past contributions, and that you have no intentions of letting anyone go.

5. Be willing to restructure things to free up time and capacity. If you can’t kill a project, maybe you can do it in a different way so that you are more efficient. For example, maybe you group similar tasks together, so that instead of running one report each day, you run five reports all at once and save some time. Or maybe you automate the reports or alter the report contents slightly so that they take less time to produce. Be creative and ask your team for suggestions.

6. Be thoughtful about how a sub-team will be perceived. Creating a smaller subgroup focused on strategic initiatives can create resentment among the other team members. If you have a relatively small team, it’s probably best to involve everyone in the strategic efforts. If you have a larger team, you may have to create a sub-team, but make sure you do it in such a way that no one feels slighted.

7. Reexamine your routing thresholds. Most pricing teams are examining certain deals on a regular basis. Some of that work is important, but some of it is just creating extra work for the team. Consider whether you could reduce your workload by changing the rules that govern which deals your team has to approve.

For more tips, check out From Tactical to Strategic Pricing. It covers these seven steps in more detail, and tells you what to do after that.

You should also take a look at the webinar on Powerhouse Pricing Teams. It explains how other B2B pricing teams have overcome obstacles like those you face and have achieved high levels of success.

Get Immediate Access To Everything In The PricingBrew Journal

Related Resources

  • The Fundamentals of Pricing Intelligence

    In pricing, it's easy to feel like you're making decisions in a vacuum. But there are many powerful sources of pricing intelligence you can leverage. In this on-demand webinar, learn how to design and implement systems for tapping into those sources of intelligence and how best to respond.

    View This Webinar
  • A Modern Approach for Fixing a Costly Profit Leak

    We recently went through a virtual negotiation training program that can help close the massive skills gap between buyers and sellers. In this research brief, we share our impressions and recommendations.

    View This Research
  • The Functional Area Cheat Sheet

    A quick overview of the common ways different internal groups can have an effect on pricing outcomes and suggestions for how you might be able to diplomatically help them help you.

    View This Tool
  • Are Revenue Management and Pricing Different?

    Some practitioners will use the terms "revenue management" and "pricing" interchangeably. In this expert interview, Amit Aggarwal, the Executive Vice President of Revenue Management at iHeartMedia, helps explain the differences and why they matter.

    View This Interview