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Tactical pricing

Short term pricing initiatives can lead to significant profit improvements.

Revenue and profit gains do not require substantial changes to your pricing strategy or price model. Chances are that you are leaving money on the table today that is relatively easy to capture. It can be as simple as starting to charge for services that you give away for free today.

Tactical Pricing starts with analyzing your offerings. How do you set prices and charge for your products and services? How consistent and structured are you in capturing the values that you provide? This is typically done through internal as well as external interviews and analysis of historical transactions.

The analysis typically leads to a set of possible measures. These are quantified in terms of profit potential and complexity of implementation.  Those that generate enough profit and can be implemented in less than three months qualify as tactical and will be deployed.

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The potential profit improvement from identifying and implementing tactical measures vary depending on the industry and the quality of your pricing. Typically, we see profit improvements of 2 – 4 percentage points. Depending on the size of your business and your current profit, this can be a substantial profit improvement!