The most direct impact on both Revenue and Profit comes from Pricing. Inflation makes pricing even more crucial. We have applied solutions in every aspect of the pricing value chain. All data driven.
Some years ago, it was all about price wars, later it was about cross border sales due to price differences and now it is all about inflation and the ability to pass price increases.
Pricing is the most challenging of the sales functions! Because of the hidden fear of losing customers when increasing prices or not giving in to demands from trade partners.
In a study*, only 17% of the survey participants operating in Consumer Goods had actually enforced higher prices in retail!! The rest either failed completely or benefited slightly from their price increases. Think of the times price increases were immediately taken back through stronger promotions.
Often trade terms in the various channels (or customers) have evolved with time, always upwards, while specific channels' or customers' importance have decreased. This requires reset but rarely sales department will do it voluntarily. Until the system cannot afford allocating funds in nonproductive levers!
We have firsthand experience in analyzing the pricing practices of a wide range of countries and markets and designed ways to minimize price frictions while repurposing funds to engines which grow revenue. We have included contract and agreement management and negotiation to prepare best for the upcoming difficult discussions.
We can decisively help. Let us explain how.
You can reach Manolis Lekkas at +30 6936616118 or +49 1775002727
* Simon Kucher Raising Prices in Consumer Goods: How to Succeed