Pricing – Dual Impact

Overview

Pricing is often a poorly understood and under-managed activity across many companies.

Our ADAPTIVE, DUAL IMPACT and VALUE BASED pricing helps define the optimal pricing structure and level which we then tailor to services and products strategy.

We are able to identify customer micro-segments and tailor pricing to segment characteristics. Pricing is a deceptively simple but particularly challenging opportunity to realize. 

Pricing is extremely tied to customer demand elasticity. At Joshua’s Capital, our engagements always start with a pricing diagnosis to understand the drivers of our client’s pricing strategy and thereafter provide a new pricing operating model to support changes and execution

How we help clients across our 4 key industries to prepare for a pricing driven future

Joshua’s Capital approach follow 4 key steps:

Phase 1: Pricing Diagnosis

Phase 2: Pricing Strategy

Phase 3: Pricing Implementation & Sustainability

A well tailored pricing pricing can directly and positively impact both the top and bottom lines.

We optimize pricing to maximize margins and customer lifetime value.

A pricing partner needs to deeply understand your market and your business, while also maintaining a

A successful pricing change can positively impact sales, profitability, and operating income rapidly and effectively

Right playing with the elements of pricing can represents a very powerful tactical tool for revenue growth.

WHAT, HOW, and WHEN to price has always represented a very delicate tool.

As an example, for a large B2B manufacturing company with global reach, we provided support in realizing price increase plus a structural change. In the diagnosis phase, we adopted the following aproach:

  1. De-constructed pricing formulae by product and site
  2. Conducted interviews accross the value chain with the key stakeholders to identify pricing opportunities, to understand their perception of the company’s price positioning.
  3. Developed model to simulate effects of cost and price changes
  4. Quantified impact by site and product
  5. Derived case for change and quantified price increase target

We work alongside the management of our clients to evaluate the full spectrum of opportunities, including portfolio design, price changes, promotions and discounts — to identify where to focus. We leverage industry expertise, advanced analytics, consumer surveying, competitive analysis and expert feedback to unlock the insights needed.

While the objective of pricing strategy is quite simple — optimizing prices to maximize profit and customer lifetime value (LTV) — pricing strategy is highly nuanced and involves a range of decisions that vary by product and market. This can include evolving a portfolio to support an optimal price curve, developing options in different price tiers to serve specific customer segments, and using price as a competitive differentiator. For consumer businesses, it is important to consider the price set to the end consumers, through a deep understanding of their segmentation and elasticity, and also the prices, discounts and incentives to use with channel partners to ensure those consumers find your products.

A pricing partner needs to deeply understand your market and your business, while also maintaining a toolkit of approaches and experience drawn from the broader pricing world.

  1. Assembled pricing best practices
  2. Set up evaluation framework for client benefit and customer acceptance
  3. Quantified and evaluated all options
  4. Developed line of argumentation towards key accounts

we have developed deep expertise and a strong track record for delivering value through eight specific services

It’s well known that many companies struggle when it comes to the implementation of the strategies that have been well designed to consistently realize planned pricing changes.

Rolling out a new pricing strategy across an organization and ensure strobg internal and external buy in is a very critical task.

In addition the consistent monitoring, evaluation, and refinement of the implemented strategy is very key and implies the level of the company maturity and the extent the management buy in.

We have strong experience in creating appropriate playbooks and other related content to empower the client facing team or other external stakeholders effectively implement and clearly comunicate and understand pricing strategy.

We support the transition to the newly developed pricing strategy in order to realize the full potential of the new strategies.

Thanks to our PRICING GOVERNANCE toolbox, we create a pricing framework to implement and monitor a pricing strategy

For the aftermarket division of major OEM, we identified opportunities to increase gross margin w/o starting a price war

For an industrial manufacturer, we achieved 4%-points EBIT improvements with our dual impact pricing approach

For a food retail market leader, we defined and supported the execution of a strategy to regain price-performance leadership

For a global specialty chemicals and paint manufacturer, we developed a Pricing Architecture to align pricing with overall strategy

For a French firm specialised in industrial services, we defined a comprehensive revenue growth organisational strategy