Where Are Your Profit Opportunities?
Our experience and a wealth of economic research clearly show that for most companies, pricing is the number one opportunity to improve profits.
An Opportunity Assessment project is an excellent way to identify the key leverage points in your business where changes to your pricing practices will give you the best results in the least amount of time. PriceGain can quickly identify the best opportunities in your company to improve profits with smarter pricing practices.
The Opportunity Assessment process identifies revenue and profit leakages.
Depending on the size and complexity of your business, Opportunity Assessment projects usually last for two to six weeks. We interview key employees and business partners using a combination of one-on-one interviews and workshop sessions. In many cases we also analyze historical data to identify profit improvement opportunities and verify our recommendations.
We review your current procedures and document the opportunities as well as the gaps between how you handle pricing now and best-of-breed practices.
Mind the gap between intended and actual pricing practices.
Based on this, we map out your real pricing processes and note gaps between intended and actual processes. We also examine historical pricing, net and gross profit, revenue, and market share data.
We report preliminary findings all along the way. We also complete the Assessment project with a written report and recommendations for prioritized improvements in your pricing practices.
Improve profits quickly.
In our experience, most companies are able to implement some recommended pricing improvements within a few months and improve their net profits by up to 6 points!
Here’s how we perform an Assessment project:
Step One: Establish Benchmarks
We begin by analyzing your current strategy, processes and tactics for pricing. We compare your current programs with best practices. This helps you understand exactly where you are in the maturity and sophistication of your pricing processes.
Following this, you’ll be able to answer questions, including: How good are you relative to your competitors? Which areas need the most improvement? Which parts of the process will be easiest to improve quickly? Where are the most likely places for early wins?
Step Two: Prioritize Your Profit Opportunities
Based on the results of the benchmarking step, we work with you to prioritize profit improvement opportunities. It’s critical that the priorities conform to your overall business strategies and plans.
We have also found over the years that it’s extremely important that the first new pricing programs be seen as wins by your sales staff. Getting your sales team on board and enthusiastically supporting the new pricing initiatives helps ensure that the rest of your organization embraces the changes as well.
What are the right priorities for your company?
Therefore, the highest priority programs usually are selected based on four criteria:
- How quickly can they be implemented?
- How many people must be involved?
- How measurable will the results be?
- How visible will the results be to the entire organization?