2. Executive Summary
How should we Price? There is no one true answer or strategy, there are no silver bullets,
there is no perfect price which extracts maximum revenue from every single customer.
We need to plan for success, do our due diligence.
Nothing impacts your bottom line better than improving your pricing, the quickest way to
improve shareholder value. A pricing strategy is built on a value proposition to our
customers, its imperative we associate price with value, equally imperative we understand
the competitive landscape, and also ensure the overall commercial proposal addresses
customer issues and risks.
In summary lets be demanding of each other and leverage subject matter experts across
the organisation and plan to win every deal.
“Pricing is not a race to the bottom”
3. Pricing Blueprint
• Develop a dynamic pricing proposition built on value and a challenger mentality. Qualify
commercial requirements, and ensure appropriate levels of justification are available at each
stage (price points / discount levels). Be relentless in the pursuit of winning.
• Fully appreciate the competitive landscape, utilise the competitive team where appropriate,
focus on price points / budgets not discount levels, customer requirements, creating
solutions for issues.
• Ensure high levels of creativity when pricing, create a framework which can be used for
future deals, ensuring consistency & simplicity.
• Deal metrics, particularly for existing customers, how do these stack up based on previous
deals, performance improvements, price erosion commitments, current market place &
expectations of the customer.
• Avoid a Standard Discount mentality and sales culture, this leads to leaving money on the
table or not utilising all the facts and risks losing deals, focus on creating a high level bespoke
pricing strategy which can be quantified.
4. Pricing a Value Proposition
• Win every deal, winning isn’t everything but planning to win is, plan to be better than the
competition. Win pricing battles without going to war, do not over-react to price information
received, look to gain more evidence and take precise action.
• Pricing ideation – plan for success, fully appreciate the levels we won previous deals at,
review commitments made (price erosion / future discounts). Relay performance gains, and
create value.
• Pricing / Discounting is not a race to the bottom, no such thing as standard discounting,
qualify every request, understand the evaluation criteria, anticipate the competition and also
cost of change for customer.
• Understand the landscape clinically, provide a consistent pricing roadmap aligned to the
customers business - defined and documented.
• If aggressively discounting, look at ways of avoiding negative precedent being set, thus not
impacting future deals, avoid simply discounting of list.
5. Pricing Responsibilities
• Provide a more dynamic support role, whilst remaining independent. Challenge and qualify
requests, create a culture of total accountability.
• Critically analyse the deal requirements, make recommendations on optimising overall
solution, target price points based on empirical evidence from previous deals or
precedence. Invest in market research, competition and customer consumption practices.
• Simplify the overall quote engine, simplification is the key to speed of execution, improve
communication of strategy and established pricing policies, add value to the sales process.
• Greater accountability and involvement across the entire bid cycle and planning process,
from sales forecasting, highlighting key deals in Q, and proactively participating in the sales
strategy, remaining close to the deal throughout, including handover to finance, revenue
recognition & legal when won.
• Develop a seamless integration with other organisation, and limit the number of deals
requiring complete re-modeling when deals are won. Greater understanding of rev rec, and
how to model deals effectively to mitigate issues and maximise revenues.