{"id":51833,"date":"2022-03-10T15:33:26","date_gmt":"2022-03-10T22:33:26","guid":{"rendered":"https:\/\/www.vendavo.com\/?p=51833"},"modified":"2023-06-12T01:32:45","modified_gmt":"2023-06-12T07:32:45","slug":"b2b-pricing-improvement-not-project","status":"publish","type":"post","link":"https:\/\/www.vendavo.com\/pricing\/b2b-pricing-improvement-not-project\/","title":{"rendered":"B2B Pricing Improvement is Not a Project"},"content":{"rendered":"\n

One thing I see lacking in business projects around \u201cpricing transformation\u201d, particularly in the realm of data-science \/AI modeling, is often a long-term focus around sustaining change and improvement that results from project-driven events or initiatives.   <\/p>\n\n\n\n

Price improvement and commercial excellence should not be fleeting initiatives<\/strong>. They require an eye toward sustained operation and delivery of improvements at a reasonable level of effort.\u00a0\u00a0<\/p>\n\n\n\n

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From the NYTimes<\/em>: Corporations Raise Prices as Consumers Spend \u2018With a Vengeance\u2019\u00a0<\/em><\/a><\/strong><\/p>\n<\/div>\n\n\n\n

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It\u2019s relatively easy to generate a snapshot set of target prices, or generate a price increase file for products or customers.  It\u2019s another question<\/strong> to think about a sustaining capability to do these things. But these are exactly the considerations that need to be top of mind as businesses engage in hiring data scientists or consultants to work on pricing. <\/p>\n<\/div>\n<\/div>\n\n\n\n

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<\/span>B2B Pricing Improvement Needs a Longer View<\/strong><\/span><\/h4>\n\n\n\n

The economy at present is characterized by substantial disruptio<\/strong>n, be it supply chain logistics shortages, pandemic demand winners and losers, or economic sanctions.  Many businesses are being caught flat-footed in their ability to simply execute the changes they desire to implement.  Most pricing consultants I know are presently working overtime as businesses invest urgently<\/strong> in efforts to react to these disruptions, as they need to keep up with cost or market price changes. <\/p>\n\n\n\n

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My main argument today is that businesses need to look hard at current emergency initiatives and plan for capabilities beyond a one-time reaction.<\/strong>  Today\u2019s circumstance only reinforces that a business makes money \u2013 or doesn\u2019t \u2013 based on its standing capability to change course whenever it needs to make adjustments.  <\/p>\n\n\n\n

This means thinking beyond today\u2019s emergency to tomorrow\u2019s ability<\/strong> to act proactively in the face of changing circumstances. <\/p>\n\n\n\n

Investing in a proper enterprise capability for price execution or pricing guidance on a continuing basis may be a level above efforts to execute<\/em> a project. Yet we have found that customers who think about proper B2B pricing improvement capabilities and then expend the effort to ensure their implementation are very likely to exceed 5-10x the value <\/strong>compared with one-time consulting-driven or project-focused events.\u00a0<\/p>\n<\/div>\n\n\n\n

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What scenarios are increasing the pressure on pricing teams?<\/strong><\/p>\n\n\n\n