{"id":63389,"date":"2023-11-02T08:38:18","date_gmt":"2023-11-02T14:38:18","guid":{"rendered":"https:\/\/www.vendavo.com\/?p=63389"},"modified":"2024-02-22T10:19:58","modified_gmt":"2024-02-22T17:19:58","slug":"value-of-pricing-transformation","status":"publish","type":"post","link":"https:\/\/www.vendavo.com\/pricing\/value-of-pricing-transformation\/","title":{"rendered":"Demonstrating the Value of Pricing Transformation\u00a0"},"content":{"rendered":"\n

Pricing transformation projects might seem daunting, but the time and effort <\/strong>is worth it \u2013 especially if you can get executive and stakeholder buy-in before, during, and after implementing pricing technology<\/a>. In this article, Chris Kennedy-Sloane, Business Consultant at Vendavo, explains what goes into a pricing transformation, the pitfalls that often derail the process, and why the potential business benefits are well worth the effort.\u00a0<\/p>\n\n\n\n

Vendavo recently held our annual Growth + Profitability Summits<\/a> in both Chicago and Stockholm, each with a panel exploring how to successfully \u201cDemonstrate the Value of Pricing Transformation\u201d projects internally. The panels focused on understanding why such projects are needed, what happens when you aren\u2019t successful at communicating their value, and the potential positives that happen when your business stakeholders understand the exceptional impact pricing transformation can bring.  <\/p>\n\n\n\n

Our Chicago attendees heard from Matt Altimari<\/a>, Vice President of Finance at Genpak; Anne Lewis<\/a>, Senior Pricing Manager at Afton Chemical; and Christopher Sorrow<\/a>, Managing Director at Blue Ridge Partners, all of whom offered key insights into the pricing transformation process.  <\/p>\n\n\n

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This article summarizes what we heard from our panelists. <\/p>\n\n\n\n

<\/span>What is Pricing Transformation?<\/strong> <\/span><\/h2>\n\n\n\n

Let\u2019s start by defining what we\u2019re actually talking about. A pricing transformation is any project or ongoing process<\/a> designed to change or improve the technology, people, and processes surrounding price in an organization. These could be focused on one area \u2013 like cost management or apportioning, list price management<\/a> customer discount or rebate management<\/a>, among many others \u2013 or a holistic overview of a business\u2019s pricing waterfall<\/a>.  <\/p>\n\n\n\n

Whether they are specific and tactical or general and strategic, pricing transformations will seek to create change. And, they are almost always expected to result in measurable improvements in business outcomes like sales revenue and margin<\/a>, operational excellence<\/a>, or improved internal or external stakeholder experience<\/a>. <\/p>\n\n\n\n

<\/span>What Goes into Pricing Transformation Projects?<\/strong> <\/span><\/h2>\n\n\n\n

What feeds into a pricing transformation project<\/a> may seem nebulous, because it involves many teams and departments throughout an organization. That means people will be needed at multiple levels to cover a variety of roles, including: <\/p>\n\n\n\n