Inspiring Vectia Forum on strategic pricing
Author Nina Olin
Published on September 23rd in categories News.
A common challenge for firms today is improving bottom line growth. The methods for achieving this vary and cost reductions often seem to be the primary means to reach targets for improved profitability. However, also the impact of pricing on profitability has shown to be huge as it offers significant leverage for increasing EBIT.
Although pricing strategies show considerable variations among industries, many firms demonstrate that choosing a customer value-based pricing strategy has a more sustainable effect on profitability. This, however, requires an increased understanding of what actually creates value for the customer. How, then, can a value based pricing strategy be achieved and implemented? What does this require from the firm?
On September 22, 2011 Vectia arranged a breakfast seminar on how to achieve improved performance through strategic pricing. Guest speaker at the event was Dr. Andreas Hinterhuber, a renowned expert on pricing strategies with both a business and academic background. The participants represented large, forefront Finnish companies.
The presentations of Andreas Hinterhuber and Vectia’s managing partner Tom Lindholm raised inspiring discussions during which for example the following issues gathered interest:
- Using offering analysis as a basis for identifying optimal pricing strategies (cost vs. value).
- Identifying how customer maturity affects value drivers.
- Pricing should be based on an understanding of the customer and how the company’s offering is differentiated from that of the competition.
- Differences in value drivers on a global level.
During the breakfast forum Vectia also introduced the upcoming consortium programme on strategic pricing; Improved performance through strategic pricing. The objective of the programme is to accelerate the participating companies’ profit improvement in time with limited growth by creating new thinking, identifying best practices and action planning.
More information about the consortium programme as well as this and other upcoming Forums by contacting helsinki@vectia.com.