PricingBrew

Insights & Tips

Already a subscriber? Login

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

Why Pricing Doesn’t Get Credit

See if this sounds familiar…it’s one of the most common and frustrating burdens we hear from pricing teams:

“Pricing always gets the blame but never gets the credit.”

When you think about it, pricing is often in the middle of a perfect storm. When margins take a hit or sales has trouble closing a deal, they can point their finger at pricing. But when margins are on an upward swing, it can be chalked-up to changing market conditions or heroic sales efforts.

Most seasoned pricing professionals know that management’s first inclination is often to attribute any performance gains they see to something other than pricing’s efforts. You know that their initial bias will be toward some other explanation.

And even if they don’t say it out loud, you just know they’ll be thinking it.

No, it’s not fair. But it is reality. And while it might be tempting to wallow in the inequity of the situation, the better course of action is to acknowledge the reality, anticipate the responses, and take steps to preempt them.

In the “Proving the Value of Pricing” and “Boosting the Pricing Team’s Influence” webinars, we discuss a wide range of strategies, tactics, and tips for communicating performance improvements in ways that are very difficult to dismiss, contradict, or attribute to “advantageous celestial alignments”.

For example, one effective strategy is to get in the habit of using “business as usual” (BAU) as a touchstone. By establishing a set of historical, pre-improvement metrics and trends, you can credibly illustrate what would have happened in the absence of pricing’s interventions, improvements, and optimizations.

Another effective approach involves making comparisons to holdouts or unaffected groups. By tracking and illustrating the performance differences between these “test” and “control” groups, particularly as they trend over time, you’re making it very difficult to attribute the variance to anything other than your efforts.

As discussed in the webinars, there are a variety of ways to preempt this sort of skepticism and bias. The first step, however, is to acknowledge its presence. While it may not be stated explicitly or outright, you have to recognize and anticipate that it’s going to be there, no matter what. Then you can take steps to address it—proactively, credibly, and decisively.

Get Immediate Access To Everything In The PricingBrew Journal

Related Resources

  • Getting Your Salespeople to Price Better

    Chances are, the behavior of your salespeople will ultimately determine whether your pricing strategies are effective or not. In this on-demand training seminar, learn proven approaches and strategies for getting your sales team to price and discount far more effectively.

    View This Webinar
  • Pricing Services to Customer Value

    When you’re selling services or project work, it can be challenging to get customers to focus on the value being delivered or exchanged. In this recorded training seminar, learn how to improve revenue and margins when your offering is largely intangible.

    View This Webinar
  • Timing Your Pricing Actions for Success

    The timing of your pricing actions can greatly influence how those actions are perceived and received. In this Express Guide, learn how to time your pricing actions to minimize conflict and maximize acceptance.

    View This Guide
  • Step-by-Step Competitive Analysis for Strategic Pricing

    How to use competitive analysis to identify actionable opportunities to gain strategic advantage, expose competitive gaps, provide differentiation beyond price, and reduce the pressure to discount.

    View This Tutorial