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Susanna Lotha
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Operational Pricing

Pricing is key to a company’s profits. And yet so many companies seem to overlook the importance of a well-crafted pricing strategy. Often they use cost-plus as the basic pricing strategy for their products, with some adjustments based on market averages. A standard mark-up on the product, based on production costs adjusted for local conditions, becomes the customer price. Price revision is often a percentage on the previous year’s prices, with little reflection of the customers’ perceived real value.

Taking the complexity out of pricing

Excel files and manual uploads to the ERP might work for companies with only a few products and customers in a single location. But most companies operate in much more complex conditions. Multiple markets mean multiple competitive situations. And multiple distribution structures and contracts. Different currencies. Customers that value different solutions differently. Demands that constantly fluctuate. Competitors that keep adjusting their prices, sometimes on a daily basis.

The right strategy and the right platform

You need a pricing and execution strategy that navigates the volatile pricing landscape. A strategy that starts with customer value and takes in all parameters such as currencies, market volatility, changing customer behaviour, competitor price shifts, etc. And responds accordingly. Quickly and accurately, with prices that always seem fair and justifiable by your customers. A strategy that ensures you’re a step ahead of the curve and never miss margins ever again.

You need a central platform for pricing strategies and execution. Something that lets you update your data on the fly and slashes your pricing execution time significantly. An operational solution that delivers insights into pricing challenges, and the right solutions to manage prices. Easily, efficiently and effectively. That is precisely what Navetti PricePoint™, our software suite, delivers.

Easy to implement, quick to deliver results

That combination of strategy, tools and execution is what we call ‘Operational Pricing’. All the tools you need come as standard in Navetti PricePoint™. Our consultancy division, Navetti Consult™, will help you craft the strategy. And equally important, will ensure you rapidly become operational. Revenue and profit improvements will follow equally fast, as you move from pricing optimization towards pricing excellence. How fast is ‘fast’? We work with a Triple 2 benchmark for our projects. It means 2 hours for first deployment, 2 weeks for first profit improvement and 2 months for full integration and true operational pricing in place. Leadership comes at a pace.

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