This slide deck includes a set of tools I have used frequently over the last several years and a few new ones. Most are appropriate to B2B pricing but some may be useful in B2C companies. Some are very pricing specific and others more broadly applicable. Enjoy.

1. Some useful B2B pricing tools
Ian Tidswell
February 2017

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Ian Tidswell Biography
Founder of een Consulting, focused on helping B2B companies develop best-in-class
end-to-end sustainable pricing processes
Professional Experience
• Since 2016, Independent Professional, Switzerland
• 4 years, Global Head of Pricing, Syngenta, Switzerland
• 2 years, Pricing Transformation Lead, Medtronic, Switzerland
• 6 years Partner, Head of Business Consulting, Vendavo Consulting, UK and USA
• 4 years, Director, i2 Technologies, USA
• 4 years, to Engagement Manager, McKinsey & Company, USA
Selected Experiences
• Developed a pricing framework & process for pricing innovations for out-licensing for leading diversified
industrial company
• Built the HQ global pricing team for Syngenta. Indirect management of in-country pricing managers
• Lead multiple in-country projects for Syngenta to diagnose pricing opportunities and actions to address
price setting, commercial terms management & price execution challenges
• Lead development of a global commercial terms/policy framework and playbook to align CT/P with
strategic goals in each country within Syngenta, improved CT/P performance and enabled automation
• Headed the strategic initiative to substantially improve, harmonize and automate Medtronic
International’s pricing processes across all major markets. Drove improved pricing & risk exposure
• At Vendavo successfully led discovery, design and deployment of Vendavo price system at multiple
customers including chemicals, distributor, semiconductor, tire and mobile phone manufacturers
• Frequent speaker at global pricing conferences
Education
• Ph.D. Physics, Harvard University, Cambridge, Massachusetts, USA
• B.Sc. in Physics, Imperial College, London University, UK
At a glance
• Former McKinsey senior
consultant with line
management experience
in MedTech and agri-
chemicals business
• Proven B2B Pricing
transformation leader
• Practical, hands-on
approach with track
record in value delivery
• Based in Basel
Switzerland
• LinkedIn Profile
• Email:
ian@eenconsulting.com

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24Project Stakeholder Management6
20Type of Pricing5
14Value Maps4
12Prioritization Workshop3
9Pricing Management Frameworks2
6Pricing Maturity1
4Introduction0
Contents

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24Project Stakeholder Management6
20Type of Pricing5
14Value Maps4
12Prioritization Workshop3
9Pricing Management Frameworks2
6Pricing Maturity1
4Introduction0
Contents

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Introduction to pricing tools
• The attached are tools that I have found useful in various initiatives to improve
different aspects
• By no means meant to be exhaustive, I will update occasionally
Tool Purpose and explanation
Pricing Maturity Assesses the relative maturity of pricing activities. Useful
for identifying opportunities, tracking progress on
initiatives and measuring progress of price maturity
Pricing Management
Frameworks
Helps to define the major pricing process steps and
decision points. Useful for breaking pricing challenges
into manageable pieces
Prioritization Workshop Helps to identify opportunities in a BU or country
organization. Ensures buy-in from the local management
team on initiatives (solving “their” problems). Helps to
balance the mix of short- and long-term impact projects
Value Maps Tool for understanding the relative position of a product
offering versus competing products
Type of Pricing Helps to drive alignment on key factors that affect price
Project Stakeholder
Management
For major initiatives ensures that the stakeholder
landscape is understood, so influencing efforts can be
focused on appropriate stakeholders

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20Type of Pricing5
14Value Maps4
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Four pricing maturity assessment dimensions
Portfolio Pricing Commercial Terms & Policy Pricing Execution Supporting
Pricing strategy alignment Customer and channel
Segmentation
Price Governance Management support
Collection and use of
market price data
CT/P aligned with strategic
goals
Track and Monitor Pricing
KPIs
Core Pricing Team
Capabilities
Portfolio pricing setting CT/P effectiveness &
efficiency
Customer price exception
management
Extended pricing team skills
(sales, marketing, finance)
New product pricing Product Push balance Price Communication Pricing relevant data
Product Segmentation Customer loyalty programs Pricing system
Price corridor setting Promotions
• An assessment of pricing maturity can be useful to identify focus areas to address
going forward, AND help track and drive progress as a management tool
• Using pre-define levels to assess
• Current level
• Target level (in 6-12 months and long-term goal)
• Importance of the level

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Area Minimal Low Team assessment High High Performing Importanc
e
Pricing strategy
alignment
Collection and
use of market
price data
• No price tracking
• No new product
price research
• No centralized
collection from sales
• No/limited analysis
of own price trends
• Price tracking of all products with >$20m
revenue
• Customer DCM analysis of new product
with target 5y revs > $100m
• Structured process for collecting
competitive intel quarterly
• Regular, consistent analysis of own price
trends. Results leveraged
L / M / H
Portfolio pricing
setting
New product
pricing
Product
Segmentation
Price corridor
setting
Pricing Maturity Assessment: Portfolio Pricing
Today Target
PARTIAL EXAMPLE
• Multiple levels defined and should be customized to your situation
• Levels should be as unambiguous as possible

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Overall Pricing Framework (example)
• Offer Design
• Product & Customer Segmentation
• Price Setting (List Price)
• Price Guidance (Pocket Price Corridor)
• Delegation of Authority, Incentives
• Capability development
• Communication (internal, external)
• Product & Service Design
(Value Architecture)
• Waterfall Design
• Comm. Terms & Policies Menu
• Process & Automation model
• Price Governance model
• Transaction Price Process
• Exception Management
• Metrics
• Pricing Process
• Price Outcome
(absolute, relative)
• Adjust tactics, goals
Strategy
+ Goals
Pricing
Structure
Execute
Monitor
+ React ● 2-5 easy-to-understand elements
● Clear boundaries between the
different elements
● Facilitates breaking problems into
manageable pieces
● Facilitates clear roles and
responsibilities

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High-level pricing decision process flow (example)
● Documents who and where pricing
decisions are made
● Ensures a clear, robust decision process
with reduced errors
● Enables automation

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Preliminary prioritization of opportunities
Value potential
Easetoachieve
Ignore
Quick
wins
Major
project
Big wins
(rare)
● Use a flip-chart with the axes pre-drawn
● Write on Post-It notes possible pricing
challenges faced by the organization
(gathered via pre-workshop interviews)
● Team(s) position Post-It notes with the
opportunities on the chart
● Write new Post-It’s for new
opportunities or sub-opportunities
● 10-15 minute exercise
● Teams discuss and adjust
● Afterwards prioritize, balancing major
projects with quick wins and available
resources

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Value Map: understanding the value and price
relationship versus alternative options
• Value Maps compare perceived performance
and price, indicating which products/services are
relatively ‘good’ or ‘poor’ value
• Value Maps can be built from expert opinion or
market survey data:
• Expert opinion is useful as a starting point
• Market survey data (like a Key Buying Factor –
KBF, or Discrete Choice Model – DCM) provide
real information
• The position on the Value Map helps predict a
products likely trajectory:
• Value disadvantaged products will tend to lose
market share over time
• Value advantages products will tend to gain
market share
• Fair value products with maintain market share
Customer perceived performance
Customerperceivedprice
Value
advantaged
Value
disadvantaged
Individual product

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Where to get information on price and sources
of value?
Opportunity
Assessment
Sales
Analysis
Internal
Experts
‘Standard’
Market
Research
‘Custom’
Market
Research
Insights from internal expert
(sales, marketing) experiences,
facilitated price/volume
workshops, etc.
Analysis using internally sourced
sales data :
● Revenue, price, volume, mix
trends by brand
● Product cost trends
Market Research targeted to addressing a
specific question relevant to the
opportunity
● End user pain points (Key Buying
Factors - KBF)
● Value discovery (Discrete Choice
Modeling - DCM)
Off-the-shelf or ongoing Market Research
tracking overall trends:
● Market trends, forecasts etc.
● Competitor analyses
● Market structure analysis
● Market economics (manufacturer & channel)

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Customer perceived performance
Customerperceivedprice
Value
advantaged
Value
disadvantaged
Value Map insights 1: when off the ‘fair value’
line, actions to take
• When a product is out of the Fair Value
Zone, two actions can be taken:
• Improve the perceived value with education,
marketing, product/service adjustments etc.
• Adjust the price to move closer to fair value
• Some combination of the two

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Customer perceived performance
Customerperceivedprice
Value
advantaged
Value
disadvantaged
Value Map insights 2: target areas which have
less competition
• In this case the top and bottom of the
value map have a number of competitors
(red circle) and at high risk of price erosion
• The middle of the value map (green) is
much less competitive. New or
repositioned products in this area may
capture a larger market share

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Customer perceived performance
Customerperceivedprice Value Map insights 3: risks of price wars when
lowering prices
• Lowering the price of a product into the
value advantaged zone can have the
effect of increasing market share…
• …but competitor reactions may result in a
price war, permanently lowering the fair-
value zone and taking value out of the market
Customer perceived performance
Customerperceivedprice

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20Type of Pricing5
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12Prioritization Workshop3
9Pricing Management Frameworks2
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Typical pricing involves a balance of the 3 types of
core pricing approaches
• Undifferentiated products
• No supply constraints
• Low market discipline:
“compete on price”
• Supply/demand dynamic
• Low product differentiation
• Many competitors
• Highly differentiated products
• Significant unique value
• Low competition
Value
Pricing
Cost+
Pricing
Competitive
Pricing
 Excess supply vs. demand

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Identify the reference price and your differential
1. Identify the Reference Price: what is the
customers next best alternative?
2. Place a dot which indicates the
approximate mix of the three types of
pricing that affect the Reference Price
3. Define your sources of differential value
and place a second dot at a position
relative to the Reference Price
4. Document the pricing implications in the
table (see next slide)
Note this is a qualitative exercise, helping to
identify the key price drivers and implications.
For new category products, several
references may be appropriate.
Value
Pricing
Cost+
Pricing
Competitive
Pricing

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Example of pricing approach
Value
Pricing
Cost+
Pricing
Competitive
Pricing
Tomato seed Product Pricing Implications
Reference “Big Beef” Tomato Track seed prices to
growers
Differentiation New Variety – higher
yield, longer lifetime
after harvest
Add differential based
on cost saving to grower
and higher price
achieved for crop

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20Type of Pricing5
14Value Maps4
12Prioritization Workshop3
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6Pricing Maturity1
4Introduction0
Contents

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For key initiatives assess the influence and attitude
of stakeholders
• Regularly review the stakeholder map
for key initiatives with close allies
• For key stakeholders, develop a plan
• Why they are important to the project
• What’s important to them
• Their reason for support/resistance
• Who “owns” the relationship
• Specific actions to be taken
• Keep this confidential!
Influential
non-supporters
Meet their needs,
keep satisfied
Weak
supporters
Show consideration,
keep informed
Influential
supporters
Key players,
engage closely
Weak
non-supporters
Minimal effort
Monitor
Support of stakeholders
Influence/powerofstakeholders

26. https://www.linkedin.com/in/iantidswellpricing
info@eenconsulting.com