http://isixsigmapricing.com/blog Improving Pricing Operations to Increase Profits Wed, 22 Jun 2011 20:02:28 +0000 http://backend.userland.com/rss092 en Last fall, the leaders of a mid-sized company were rather worried about an unusually aggressive competitive promotion. After analyzing their competitors ‘past promotions along with the company’s own volume and discount trends, I recommended that the company should forgo matching the promotion. The company saved over $2 million ... http://isixsigmapricing.com/blog/2011/06/22/pragmatic-competitive-intelligence-for-pricing-precision/ Value-based pricing is acknowledged to be the ideal scenario yet few companies have put it in practice.  Most companies struggle with cost-plus pricing which simply requires charging a set margin over incurred costs.  Companies also try other approaches, such as, competition-based pricing or willingness-to-pay, but without knowing their costs, these ... http://isixsigmapricing.com/blog/2010/06/30/deconstruct-for-costs-then-reconstruct-for-value/ Protecting profits through inventory management is a popular topic on quarterly earnings calls whether the company is Xerox Corporation or Joann Fabrics.  The article Ecolab: Fewer Products Greater Profits, is fairly representative of the manufacturing sector’s intention to reduce product arrays.  Ecolab plans to cut its product offering by 50% ... http://isixsigmapricing.com/blog/2009/06/27/fewer-products-is-less-more/ My seven year old enquired about our plans for earth day before leaving for school this morning. One is obliged to listen closely to influential consumers even if they don’t generate income or make purchases. Environmental consciousness is getting notice from manufacturers and retailers as they prepare to tap the ... http://isixsigmapricing.com/blog/2009/04/22/green-products-greener-profits/ In times of distress, it is natural to seek inspiration for reclaiming a positive mental state. While the current economic woes are real, it is planned optimism that fuels the determination to overcome this recession. The haikus below are dedicated to affected workers and their companies as we all take ... http://isixsigmapricing.com/blog/2009/03/31/why-not-poetry/ In this global recession, retailers and manufacturers are frantically trying to fire up demand with aggressive price promotions. But companies who fail to do adequate due diligence before launching promotions may find themselves pushed to the brink. The liquidation of Circuit City and bankruptcies of several other retailers after a ... http://isixsigmapricing.com/blog/2009/02/28/plan-pricing-promotions-for-survival-and-profit/ Many companies have developed solid pricing strategies and sales services – but without equally good pricing operations, these actions cannot deliver to full potential. The goal of pricing operations is to consistently control price deviations in transactional pricing over time and across customer segments. This goal of ensuring the prices ... http://isixsigmapricing.com/blog/2009/02/12/six-sigma-pricing/ 2009 may well be the year when executives and their pricing organizations choose to focus on due diligence and operational controls. As companies are grasping for straws in this tough economy, managers are scrutinizing their pricing and other business practices to fix problems and loopholes. After years of economic boom, ... http://isixsigmapricing.com/blog/2009/01/01/2009-the-year-of-making-the-right-choices/ How can six sigma apply to pricing strategy – Six Sigma is good only for repetitive processes? How can quality tools change the way companies (should) look at their pricing organization which is often distributed in marketing, sales, supply chain, finance and other functions? What is Six Sigma Pricing? I look for the ... http://isixsigmapricing.com/blog/2008/12/14/what-six-sigma-pricing-is-and-is-not/ A Wall Street Journal article reported today, “For the first time in recent memory, luxury goods makers are cutting prices on designer apparel, shoes and handbags in the U.S. market.”[1] Just a few weeks ago, I felt so sure that luxury brands would hold prices despite weakness in the global ... http://isixsigmapricing.com/blog/2008/11/14/luxury-goods-price-cuts/