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A Pricing Consultant’s Secret for Generating Big Gains

When I was a pricing consultant years ago, I always preferred helping companies with relatively basic pricing capabilities. To the cynical observer, this preference may suggest something about my own capabilities at the time. In truth, however, my motives were even more self-serving…

With pricing…or anything, really…the largest performance gains will usually come from the earliest and most fundamental improvements.

So, when consulting for companies with basic capabilities, I could produce large performance gains in relatively short order without employing anything close to rocket science. On the other hand, it was much more difficult and time consuming to generate even small gains for companies that already possessed much more sophisticated pricing capabilities.

That’s why the venerable “improvement curve” is shaped the way it is. Early on, the basics tend to produce big gains, fairly quickly. Then, as the improvements compound and higher performance baselines are established, further gains become a bit harder to come by.

As we highlight in the “Better” Practices for Pricing Improvement webinar, the dynamics of improvement are such that you don’t have to achieve the loftiest heights of pricing “best practice” to generate significant gains.

In the webinar, we explore a number of somewhat “less than ideal” solutions that are nevertheless capable of producing stellar results. And because these simpler solutions are all based on the principles behind the best practices, they provide a solid foundation for further improvement over time.

The point is that you shouldn’t feel too discouraged if your current situation seems very far away from best practice. Instead, recognize that there’s no better opportunity to generate outsized gains by taking even the most basic steps toward “better” pricing.

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