News from the Field: Key Questions to Address Price Leakage

Posted by Pete Morelli on Sep 18, 2018 10:13:26 AM

One of our top goals in any client engagement is uncovering revenue and profit growth opportunities.  Recently, we worked with a global technology manufacturer to answer four key questions:

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Topics: Pricing with Confidence

Go Beyond the Spreadsheet to a New Customer Value Conversation

Posted by Ellen Quackenbush on Sep 13, 2018 9:43:39 AM

Recent articles and blog postings are abuzz with the power of price segmentation, driven by the abundance of transaction data and the power of pricing analytics to create highly-tuned segmentations to capture customer willingness-to-pay. Some analytics create hundreds—even thousands—of micro-segments to maximize profitability by exploiting the differences in willingness-to-pay within your installed base. What’s not to like about this? Sounds like easy money to me. However, there are some embedded assumptions about price segmentation that pricing professionals need to consider:

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Topics: Pricing with Confidence

Do You Live or Die on Your Ability to Get Price? 3 Essential Tips to Improve your Commercial Strategy

Posted by Richard Harrington on Aug 15, 2018 9:38:49 PM

At a recent networking event, I was chatting with a pricing manager from a major company famed for their innovation. She made a comment that really struck me:

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Topics: Pricing with Confidence

Ask the Expert: GM Survey Report Commentary

Posted by Erin Cihak on Aug 8, 2018 7:28:11 PM

At Holden Advisors, we often speak with General Managers (GMs) about commercial transformation. We want to understand not only what is happening in their markets and their businesses, but also the effectiveness of their commercial teams. Recently, we asked GMs a specific question about pricing: “How can Pricing Leaders elevate the impact of their function and better serve their companies in the creation and execution of overall corporate strategy?”

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Topics: Pricing with Confidence

Report: 2018 GM Survey

Posted by Patrick McCullough on Aug 6, 2018 12:36:16 PM

Holden Advisors works with General Managers to improve the commercial performance of their businesses. Throughout the course of our work, we have identified a disconnect between the vision for and the reality of pricing functions within many organizations. Given the dynamics at play in these markets, and how customers are functionally served within them, it is no surprise a clear contradiction has emerged. As a result, we conducted a survey to validate our findings. Over the course of our research, we asked GMs to reflect on the pricing function within their teams and define their wants and needs for the pricing discipline. For the first question, we asked GMs to describe their ideal vision for the pricing function. Then, we asked them to compare and contrast this vision to the current reality. The responses were grouped into the three distinct categories defined below. Here is what we learned:

 

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Topics: Pricing with Confidence

Is elasticity the best tool in your arsenal? Not always

Posted by Richard Harrington on Jun 20, 2018 1:36:10 PM

When deciding on the price to charge in the market, many companies look to price elasticity— how the volume sold changes with the price charged to work towards what they hope will be a profit maximizing price.

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Topics: Pricing with Confidence

Metromile Takes Page from GE Pricing Playbook to Disrupt Auto Insurance Market

Posted by Pete Morelli on Jun 1, 2018 4:40:52 PM

In Pricing with Confidence, Reed Holden described the profit power of choosing the right, and sometimes innovative, pricing model. A stellar example of innovative pricing is when GE disrupted the market for aircraft engines.  They introduced “Power by the Hour” which allowed airlines to pay for engine flight hours rather than allocating large capital sums to purchase engines up front. This innovation changed nothing about the high performance GE90 engines, but aligned with how airlines conducted business and reduced adoption risk by giving customers a predictable cost for what would otherwise be a large capital expense.

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Topics: Pricing with Confidence

3 Qualities of a High Performance Pricing Team

Posted by Travis Umpleby on May 11, 2018 11:19:59 AM

The CEO of a $9B technology firm reviewed various reports, each indicating that profitability was not improving despite taking several actions to increase revenues. The CEO met with senior leadership to urgently address this profit shortfall. Pricing, product, marketing, and even IT acted to address pricing and improve profitability. Unfortunately, confusion reigned as each department made demands of the other, independently made decisions, and resources were stretched thin. Implementations were delayed or poorly executed. It looked like the next quarter’s results were going to show little profit improvement. 

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Topics: Pricing with Confidence

4 Lessons Tech Companies Can Learn from MoviePass

Posted by Mayuresh Saravanakumar on May 3, 2018 5:45:00 AM

You probably heard about MoviePass by now.  For those who haven’t, MoviePass is a subscription that allows you access to a large theater network for a low monthly fee.  Not only does MoviePass create more customer visits in theaters, but increased spending on concessions, leading to overall incremental revenue for the industry.

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Topics: Pricing with Confidence

Replace the Discounting Habit with a Little Arrogance

Posted by Travis Umpleby on Apr 26, 2018 6:01:00 AM

Celebrating 10 Years of Pricing with Confidence (video 2 of 11).

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Topics: Celebrating 10 Years of Pricing with Confidence, Pricing with Confidence