- 20-225 (20/225) rule, 50–51, 93
- A
- Accountability, importance, 204–205
- Amazon Web Services (AWS), resource leverging, 189–195
- AmeCast, Give-Gets (application), 177
- Analytics, 45
- investment, 7, 43
- usage, 7
- Architectural innovation, 121
- Arussy, Lion, 50
- ASML, triopsony, 118–119
- Attitudes, drivers, 73
- B
- Backbone, 12, 122, 124
- absence, 17
- adoption, 206
- building, 16–17, 163
- elements, 166–168
- executive team usage, 177
- inflation, relationship, 175–177
- senior executive support, 177
- Beyer, Ken, 10
- Biases, presence, 86
- Big data analytics, usage, 45
- Brand, repositioning, 99
- BTB markets, demand (derivation), 101
- Buffett, Warren, 20–21
- Bundles
- competitive advantage, 158
- prices, reduction, 158
- usage, 155
- Bundling
- basics, 157–159
- dual-level bundling approach, 124
- failure, avoidance, 159–161
- importance, 157–158
- usage, 136, 154–157
- Businesses
- decisions, 11
- questions, customer appreciation, 79
- success, processes (improvement), 203
- Business-to-business (B2B) pricing, focus, 69–70
- Business-to-business (B2B) procurements, 200
- Buyer behaviors, inflation (relationship), 168
- C
- Capabilities, requirement (understanding), 6–8
- Capability matrix, 83, 84f
- Capacity
- costs, impact, 26–27
- share, equalization, 108
- Capital-intensive businesses, price strategy, 108
- Cardinal pricing orientations, 87f
- Caterpillar, customer retention, 106
- Chief Executive Officer (CEO), organization integrator, 25
- Christensen, Clayton, 69
- Client contracts/renewals, adjustments (planning), 152
- Client customers, depth research, 79
- Client product, differentiation, 164
- Closing rates, improvement, 9
- Cohort analysis, 141
- Commercial teams, B2B business leader assistance, 24
- Companies
- business category, decision, 40
- capabilities, differentiation, 40
- cost control, capabilities (requirement), 25
- failure, reasons, 198–199
- growth tracking sources, 123
- neutral pricing usage, 97
- penetration pricing strategy usage, 97
- pricing strategies, adjustments, 22–23
- problems, 59–60
- resilience (increase), capabilities (requirement), 25
- sales confidence, building, 114–115
- sales incentives, financial goals (misalignment), 112
- strategy, pricing (alignment), 7
- Competition, offering value (relationship), 96
- Competitive advantage, 15, 201
- company exploitation, decision, 40
- competitive disadvantages, 26–27
- Competitive dynamics, importance, 96
- Competitive performance, meeting/beating, 124
- Competitors
- discipline, absence, 28
- offerings, introduction, 110
- proactive approach, 138–140
- problems, 59–60
- understanding, 7, 137–138
- value, understanding (limitation), 112
- Confidence, 197
- Confidence-building pricing process, 36–37
- Consumer Price Index (CPI), 135
- Cooper, Robin, 50
- Costing systems, impact, 27
- Cost-plus pricing model, adjustment, 33
- Cost-plus strategy, 28
- Cost-push inflation, occurrence, 133
- Costs
- competitive disadvantages, 26–27
- coverage, pricing (usage), 28–29
- increases, impact, 21–22
- perspective, improvement, 27–30
- reduction, 49, 79
- turbulence, 1
- COVID-19 pandemic, impact, 1, 91, 95, 133, 180
- Credibility, issues, 175
- Cross, Dax, 141
- Cross-functionality, alignment, 185
- Customers
- behavior, impact, 101
- businesses, value (providing), 73
- client customers, depth research, 79
- company response, percentage, 50f
- contracts, terms (enforcement), 181
- expectations, management, 137
- experience, focus, 205–207
- financial value, creation, 114–115
- firing, 93–94
- fuel price increases, passing, 205
- identification, service profitability, 49–52
- information, sharing (reasons), 75
- interviews, 79–87
- longevity, 153
- long-term customer needs, alignment, 136–137
- long-term relationship, 170
- needs, competitive performance (meeting/beating), 124
- negotiation, insights (absence), 112
- open-ended questions, 71–72, 205
- power, 201–202
- pricing relief, 182
- purchases (increase), financial incentive (offering), 155
- targeting
- deals, usage, 178
- improvement, 48–55
- understanding, 7, 93, 134–136
- Customers, value
- creation, 82–83
- discussion, 73–77
- drivers, differences, 79
- understanding, power, 74f
- usage, 80f
- D
- Data
- big data analytics, usage, 45
- diversity, 86
- importance/usage, 42–43
- providing, 64
- usage, 158
- Deal (closure), pricing (usage), 30
- Decision diversity, 86
- Declining markets, 106–107
- Dell Computer, market leadership position (loss), 106
- Dell, Michael, 106
- Demand
- cannibalization, 152–153
- satisfaction, 187–188
- Depth research, 79
- Desperation cycles, 59–60
- Desperation pricing, ineffectiveness, 65–67
- Discounting, 37
- concessions, 23
- control, rules of engagement (usage), 54–55
- habit, cessation, 5, 12, 14, 57
- mindset, impact, 63
- occurrence, vacuum (absence), 63–65
- success, limitation, 67
- unsustainability, 61
- Discounting, discipline
- absence, signs, 53f
- enforcement, 23
- Discounts, effectiveness, 52–54
- Disruptive innovation, 120
- Diversification, importance, 6
- Drilling down, 78
- Dual-level bundling approach, 124
- Dumbbell Pricing, impact, 65
- Dynamic Give-Gets, 149–150
- E
- Elasticity analysis, benefits, 16, 46–47
- End goals, usage, 4–6
- Execution
- importance, 14, 39
- outcome-centric thinking, 42–45
- strategy, comparison, 39
- Experiences, presentation process, 25
- Exploratory depth research, 79
- F
- Fairness, concept (importance), 186–188
- Fences
- Financial goals, sales incentives (misalignment), 112
- Financial incentive, offering, 155
- Financial objectives, meeting (requirement), 199–200
- Financial projections, resetting, 116
- Financial value
- creation, 114–115
- customers, obtaining, 77–78
- Fisher, Andrew, 5
- Franklin, Benjamin, 160–161
- Fuel
- costs, increase, 183
- price increases, passing, 206
- surcharge, 149
- G
- Getting Price Right (Smith), 85–86
- Give-Gets, 12, 58, 74, 95, 117, 143
- application, 177
- development, 159
- dynamic Give-Gets, 149–150
- effectiveness, improvement, 194–195
- goal, 154
- inflation, relationship, 151–152
- options, development, 159
- price reduction, correlation, 150–152
- support, fences (usage), 152–161
- usage, 16, 125, 147, 189
- Global economy, instability, 91
- Global Price Strategy Chessboard, 144–146, 145f
- Governance
- modernization, 152
- quality, instilling, 137
- Growth
- focus, 185
- impacts
- price usage, problem, 123–125
- pricing, approach, 185
- innovation, usage, 15–16, 117, 119–120
- markets, 104–105, 111
- preparation, 137
- tracking, sources, 123
- Guaranteed delivery, usage, 151
- H
- Hastings, Reed, 41
- High-impact value messages, creation, 174–178
- High-value products/services, price reduction, 193
- I
- Incentive
- mismatch problem, 113
- systems, basis, 22
- Incremental costs, measurement/management ability (importance), 26
- Incremental innovation, 120, 121
- Incremental value, derivation, 165
- Indirect increases, charging (consideration), 181
- Industry economics, understanding, 96
- Industry practice, defining, 59
- Inflation
- backbone, relationship, 175–177
- buyer behaviors, relationship, 168–169
- causes, 133
- challenges, navigation, 24–26, 66–67
- cost increases, relationship, 176
- cost-push inflation, occurrence, 133
- desperation pricing, ineffectiveness, 65–67
- dynamics, impact, 93
- environment, price increases (representation/implementation), 24
- fears, management, 12
- Give-Gets, relationship, 151–152
- hedging, 181–184
- increase, impact, 10
- indicator, cost increases (impact), 21–22
- innovation, impact, 121–123
- price strategy, 110–112
- pricing, difficulty, 183
- profitability, maintenance, 180–181
- repair, absence, 132, 179–180
- supply chain, relationship, 91–95
- turbulence, 14, 207–209
- Inflationary markets
- conditions, innovation continuation (question), 118–119
- prices, raising, 151–152
- sellers, price increases, 168
- value, power/use, 70–71
- Inflation-driven price strategy, selection, 97–116
- Innovation
- continuation, question, 118
- focus, 137
- impact, 121–123
- sources/types, 120–121
- usage, 15–16, 117, 119–120
- Insights
- creation, analytics (investment), 7
- discovery, 5, 6
- Intel
- pricing strategy, 104
- pricing training programs, 3–4
- Introductory markets, 102–103
- Intuit, Microsoft (competition), 139
- Inventory, holding (risk), 150
- Investment decision-making process, data (usage), 158
- K
- Kaplan, Robert S., 50
- Key performance indicators (KPIs), 57, 86
- Koenigsberg, Oded, 98, 99
- Kumar, Vishal, 177
- L
- Labor shortages, 9–10, 180, 207–209
- Lao Tzu, 138
- Leadership
- importance, 2–4
- pricing leadership framework, 35f
- team, interaction, 206–207
- Legacy pricing practices, toleration, 20–21
- Lifecycle (life cycle). See Product lifecycle
- challenges, 103
- offering location, understanding, 96
- price strategy, change, 107f
- List price, setting, 7
- Long-term customer needs, alignment, 136–137
- Long-term inflation scenario, hedging, 181–184
- Long-term objectives, 199
- M
- Margins, decrease, 115–116
- Market
- changes, coronavirus (impact), 140–142
- concentration, 152
- conditions, price changes (revenue impact), 102f
- declining markets, 106–107
- elasticity, 100
- growth markets, 104–105
- introductory markets, 102–103
- mature markets, 105–106
- meeting, pricing (usage), 29–30
- position, extension, 145
- share
- equalization, 108
- gain, pricing (usage), 29
- understanding, 16, 92–93, 109, 131, 136
- volatility, 132–134
- Market-driven scenarios, attribution (difficulty), 54
- Mature markets, 105–106
- Maturity progression, focus, 33
- McDonald's, bundle (problem), 160
- Medium-term inflation scenario, hedging, 181–184
- Mergers and acquisitions (M&A), 137
- Messaging, importance, 78
- Metrics
- implementation, 8
- price metrics, changes (consideration), 95
- tracking, analytics (usage), 7
- Miles, Lawrence D., 168
- N
- Needs, drivers, 73
- Negotiation, 165–166
- confidence, 15
- depth, 52–53
- difficulty, 44
- table
- position, 169–171
- winning, offering structure (usage), 147–149
- tactics, salespeople identification (assistance), 115–116
- Netflix, strategic decisions, 41
- Neutral pricing, company usage, 97
- O
- Offering
- creation, 154
- creation/communication, value (alignment), 7
- differentiated P&L impact, articulation, 185
- financial value, customer (obtaining), 77–79
- introduction, 110
- life cycle location, understanding, 96
- logic, customer observation, 153
- matching, 124
- simplification, customer value (usage), 80f
- skills, usage, 9
- structure, 127–128
- structure, basics, 124–125
- value, competition (relationship), 96
- Organization, structural response (development), 198
- Outcome-based approach, 42f
- Outcome-centric thinking, 42–45
- P
- Parker Hannifin executives, problems, 2–3
- Partnerships, creation (inflation concern), 25
- Penetration pricing strategies, company usage, 97, 106, 109, 111
- Personal Consumption Expenditures (PCE), 135
- Personal Protective Equipment (PPE) surcharges, 95
- Planning, execution (contrast), 14
- Plant closings, 9
- Poker players, 194
- price increase resistance, 169
- purchase analysis, 167
- Poker, playing (improvement), 188–189
- Polavision (Polaroid), innovation (problem), 121
- Portfolio, recalibration/cleaning, 98
- Positioning, usage, 9
- Price
- annual increase, adoption, 206
- bundle prices, reduction, 158
- changes
- customer response, 142–143
- revenue, impact, 102f
- competition, 138
- avoidance, 109
- problems, 200–201
- decrease, pressure, 102
- discounting, 14
- discounts
- effectiveness, 52–54
- usage, 143
- elasticity, measurement, 46
- increase, 79, 94–95
- assigning, 152
- implementation, decision, 47
- positioning, messages (importance), 48
- management, 137
- metrics, change, 95, 99, 136
- model
- change, 136–137
- replacement, 99
- negotiation, difficulty, 44, 115
- primary level role, avoidance, 9
- raising, 151–152
- reduction, Give-Gets (correlation), 148, 150–152, 193
- refreshing, 7
- response, rapidity (necessity), 23
- sensitivity, 156–157, 156f
- strategy, trade-offs, 73–74
- swapping, consideration, 181
- up-lift, absorption, 28
- usage, 192f
- war, avoidance, 145
- Price buyers
- increase, option, 168
- profitability, 178
- purchase analysis, 166
- Price for Profits, 7, 13, 19
- Price increases
- customers, acceptance, 24–25
- representation/implementation, 24
- Price setting
- process/reason, visibility (absence), 112
- usage, 93
- Price strategy, 6–7, 90, 97
- capital-intensive business usage, 108
- change, preparation, 109–110
- changes, 107f
- inflation, 110–112
- options, 109
- recession, 116
- salespeople, impact, 112
- selection, 96–97
- summarization, 114
- Pricing
- approaches, selection, 184–188
- behavioral-social dimensions, 85–87
- cardinal pricing orientations, 87f
- company strategy, alignment, 7
- confidence, 17, 73, 197
- confidence-building pricing process, criteria, 36–37
- customized plan, usage, 182
- defense, 76
- desperation pricing, ineffectiveness, 65–67
- development, 84
- differentiated plans, 191–194
- dynamics, 143–144
- efforts, control, 31–38
- engagers, identification, 86
- inside-out approach, 184
- leverage
- building, 129
- creation, services/solutions (development), 126–127
- maturity model, 32–34
- occurrence, levels, 34, 36
- orientation, balance, 87
- penetration pricing strategies, company usage, 97
- practices, observation, 21–22
- product lifecycle (life cycle) pricing, 99–102
- profit-based pricing approach, shift, 30–31
- strategic pricing, bundling (usage), 154–157
- strategies, 142
- adjustments, 22–23
- models, alternatives, 98–99
- systematization, 23
- usage, 28–30
- Pricing Leadership Framework, 7, 35f
- Pricing-related capabilities matrix, 84f
- Pricing-related competencies, 7
- Pricing-related decisions, speed (increase), 5
- Procurement leaders, assistance, 25
- Producer Price Index (PPI), 135
- Productizing, 7–8
- Product lifecycle (product life cycle)
- competition/position, value (relationship), 96
- pricing, 99–102
- stages, 100f
- Products
- bundling, 158
- commodity status, 187
- differentiation, 40
- flanking products, offering, 124
- introduction/availability, 191
- mix, adjustment, 181
- offerings, improvement, 15–16
- portfolio, recalibration/cleaning, 98
- presentation process, 25
- prices, rationalization, 158
- value research, example, 72
- Profitability, 150
- customer identification, relationship, 49
- decline, 67
- improvement, 135
- increase, rules, 13
- maintenance, 180–181
- path, 178
- Profitable (Arussy), 50
- Profit-based pricing approach, 185
- Profit Priorities from Activity Based Costing (Cooper/Kaplan), 50
- Profits
- addition, selling backbone (building), 16–17, 122, 124
- increase, 17, 66, 93, 108, 151, 179
- pricing, 119–120
- R
- Radical innovation, 121
- Rational pricing, priority, 32
- Reagan, Ronald, 98
- Recession
- price strategy, 116
- priorities, 207
- Red Zones (avoidance), price strategy (change), 107f
- Relationship buyers
- interaction, 172–173
- price increase understanding, 169
- purchase analysis, 167
- Requests for Proposal (RFPs), 171–172, 193
- Resources, leveraging (importance), 189–195
- Revenue
- focus, problems, 23–24
- goals, meeting, 116
- increase, rules, 13
- Risk management, 6
- Rogers, Everett, 103
- Rolilns, Kevin, 106
- Rules of engagement, 54–55
- S
- Sales
- champions, building, 113
- confidence, building, 114–115–115
- force, White Horse Syndrome (impact), 61–63
- Give-Gets, usage, 125
- incentives, financial goals (misalignment), 112
- myth, 23–24
- negotiation, 184
- projections, 90–91
- tools
- creation, 174–178
- development, 175
- Salespeople
- culture, creation, 70
- internal/external forces, impact, 113
- negotiation tactics identification, assistance, 115–116
- price strategy champions, 112–113
- training, 47, 60, 125
- Scalability, 118
- Schwarzkopf, Norman, 40
- Seller negotiating skills, usage, 9
- Selling backbone, 12, 66, 122, 124, 182
- Senior executives, accountability, 204–205
- Senior sales/marketing vice presidents, questions, 9
- Services
- bundling, 158
- development, 126–127
- differentiation, 40
- focus, 77–78
- offerings, improvement, 15–16
- presentation process, 25
- profitability, 49–52
- role, importance, 125–128
- usage, 49
- value, 81
- Shareholder value, creation, 207
- Short-term goals, meeting, 199
- Silos, impact, 84
- Simons, Robert, 40
- Skimming strategy, 108
- Skim price/pricing
- precondition, 97
- strategy, 103–105
- Smith, Gerald, 85, 86
- Solutions
- development, 126–127
- role, importance, 125–128
- value, increase, 136
- Stiglitz, Joseph, 89
- Stochastic analysis, 141
- Strategic exceptions, 23
- Strategic implementation, 132
- Strategic mindsets, creation (inflation concern), 25
- Strategic pricing, bundling (usage), 154–157
- Strategy. See Price strategy
- essence, 52
- execution, 41
- impact, 36, 89
- importance/direction, 15, 65, 123, 142
- simplicity, 15, 41
- Sub-second price changes, 5
- Sub-second timing, 141
- Supplier solutions, value (estimation), 79
- Supply chains
- constraints, 133–134
- cost turbulence, 1
- distribution, frustration, 94
- inflation, relationship, 91–95
- interruptions, 12
- protection, 144
- reinforcement process, 25
- stabilization, 93
- volatility, 20, 207–209
- Supply reliability, 122
- T
- Tao Te Ching (Lao Tzu), 138
- Techniques of Value Analysis and Engineering (Miles), 168
- Tenaris SA, market growth, 119–120
- “Touched,” meaning, 8
- Transportation costs, increase, 206
- Trend analysis, 157
- Triopsony, 119
- Trust
- absence, 204
- basis, 75
- importance, 172–174
- usage, 203–204
- U
- Understand Value, Price Fairly (UVPF), 3, 17, 186
- formula, 187–188
- pricing approach, 209
- Unit sales volume growth, deceleration, 109–110
- UPS, pricing leverage, 194
- Urgency, avoidance, 9–12
- Utilization (control), price (usage), 192f
- V
- Value
- addition, 136–137
- capture, opportunities (creation), 155
- creation, questions, 9
- customer discussion
- importance, 75–77
- reasons, 73–75
- delivery, 132
- products/services/experiences, presentation process, 25
- discussion, change, 202
- documentation, 174
- embracing, 178
- end user perception, 25
- features/benefits, connections, 77f
- financial value, creation, 114–115
- hunt, 164
- improvement, 193–194
- knowledge/understanding, 14–15, 27, 69, 134
- leader, support, 8–9
- location, providing, 73
- messages, improvement, 48–55
- mindset, adoption, 71–72
- offerings, creation/communication (alignment), 7
- ownership, 198
- perception, process (questions), 73
- positioning, impact, 74
- power, 70–71
- product life cycle, competition/position (relationship), 96
- providing, opportunities, 79
- shareholder value, creation, 207
- study, 81–83
- usage, 70–71
- Value-added enhancements, 166
- Value-added options, 125–128
- Value-adding services, 127–128
- Value-based pricing team, building, 4
- Value buyers
- choices, requirement, 169
- interaction, 172–173
- purchase analysis, 167
- Value-focused organization, capabilities (requirement), 83–85
- Value, understanding, 7
- Vendors
- interaction, 164–165
- trust, 174
- Vision, reality, 204
- W
- Washkewicz, Donald, 2
- Whiteboard exercise, usage, 168
- White Horse Syndrome, 60–61
- Z
- Zone of utilization, 191–193
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