Pricing and Profit Optimisation
Research tells us that increased prices are a much stronger profit lever than increased volume or cost cutting. On average, a 1% increase in prices will result in a 12% increase in EBITDA, whereas a similar increase in volume results in a 3.5% improvement, and a decrease in variable cost will deliver a 6.5% improvement.
What would a 1% price change do to your bottom line?
As more and more products are becoming similar in quality and features, strong brand names have a harder time justifying major price premiums. Thus, many companies are experiencing an increasing pressure on their core product prices from low-cost countries. In both B2B and B2C arenas, this has a detrimental consequence; it is putting too much pressure on the bottom line. Our experience shows us that pricing can be a fast way to resolve these symptoms.
The Commercial Excellence practice at Implement covers a wide range of subject matter expertise. We believe that thinking strategically about pricing and building the right pricing capabilities are important steps on the path to sustainable margins and, ultimately, to profitable growth.
Implement can help you capture more value through the power of pricing and position your products and services strategically in your competitive landscape. A typical pricing project targets a solid knowledge foundation for decision-making and implementation through hands-on tools and processes while aiming for fast impact.
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