Insights & Tips

Already a subscriber? Login

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

Pricing Should Be Your Second Priority

Out of the nearly two dozen subscriber-only webinars we’ve conducted over the last couple of years, Powerhouse Pricing Teams has been one of our most popular to-date. Clearly, a lot of people are interested in learning about the traits and behaviors that have helped leading B2B pricing teams achieve success and stay ahead of the curve.

One of the traits discussed in the webinar is somewhat counter-intuitive:

Powerhouse pricing teams tend to concern themselves with more than just pricing. They recognize that while pricing is one of the most powerful profit levers, it’s not the ONLY profit lever.

To many, this is counter-intuitive because excellence in anything generally requires extreme focus. So…one would naturally assume that these leading teams are focused exclusively on pricing, right?

Well…not exactly.

As we also discuss in the webinar, these leading pricing teams view themselves as business people first and pricing people second. And as such, they understand that “great pricing” isn’t really the goal. They understand that the real goal is profitable growth…and that pricing is just one of many powerful means toward that end.

Take something like “whitespace” sales opportunities, for example. These are the products or categories that your customers are buying from someone else, when they could be buying them from you. For many B2B companies, these types of sales opportunities are worth tens of millions in additional revenues and profits. Yet, these opportunities are so hard for individual salespeople to spot that they remain largely untapped.

And guess what? Accurately identifying these whitespace sales opportunities requires many of the same analytical skills and processes as accurately identifying pricing opportunities—data transformation, objective-based segmentation, comparative analysis, positive/negative outlier identification, etc.

These powerhouse teams recognize how the capabilities they’ve developed toward pricing improvement can also be used to address other profitable problems such as cross-selling, up-selling, customer defection detection, and so on. And because they think like business people first and foremost, they’re all about maximizing their leverage to add as much value as they can…however they can.

In hindsight, it might have been more accurate to refer to them as Powerhouse Profitability Teams 🙂

Get Immediate Access To Everything In The PricingBrew Journal

Related Resources

  • How to Price New Products

    In this on-demand webinar, learn about three common types of new products that pricing teams are likely to encounter, and explore the core strategies and processes for dealing with the realities associated with them. Hint: "Best practice" is not always realistic.

    View This Webinar
  • Developing An Effective Global Pricing Capability

    In this informative conversation with Lynn Guinn, the Global Strategic Pricing Leader for Cargill, learn about developing and maintaining a high-performance pricing function in one of the largest and most successful agricultural companies on the planet.

    View This Interview
  • Avoiding the Top 10 Pricing Mistakes

    You're going to make mistakes. But if you can avoid the biggest mistakes, you're definitely rigging the game in your favor. In this on-demand webinar, learn about the top 10 mistakes that other pricing groups have made along the way.

    View This Webinar
  • The Marketing Research Interview Guide

    Categories and sample questions for developing effective marketing research interview guides. A robust and well-rounded interview guide can be constructed by just developing one question in each category.

    View This Tool