Key Take Aways from the Webinar: "The Cost of Incorrect Pricing - and what to do about it?"
The topic of pricing as a strategic instrument is hot, but our overall impression is that only a few companies truly leverage it as a potent resource.
Both Ingrid and Joachim share horror stories about pricing gone wrong, missed deals due to too low pricing (yes, you read that right), lost revenues, and reduced margins because pricing is not consistently addressed. Something Ingrid emphasizes is very important, "Your pricing strategy is never complete; it should be worked on by a cross-functional group continuously to have the most impact." Ingrid further talks about companies that have received significantly lower valuations than they could have had because they neglected or simply missed working on the issue. So when it goes wrong, it becomes expensive in many ways.
"Your pricing strategy is never complete; it should be worked on by a cross-functional group continuously to have the most impact." - Ingrid Bonde, Oxx
A crucial key takeaway from the webinar is that pricing must have clear ownership. Who should own pricing is debated, and Joachim emphasizes that it depends on the company's maturity, industry, and what it sells. But someone must own it!" Joachim emphasizes.
Both Ingrid and Joachim talk about letting go of the emotional connection to pricing while also emphasizing how important it is to dare to stand by it, "It is what it is," says Ingrid. Joachim suggests daring to be bold and standing by your pricing, supported by a compelling story about the value your offer provides to customers, an aspect often underestimated.
In summary, here are the most important key takeaways:
- Assign clear ownership of your pricing and ensure that the person responsible for it has the conditions to succeed.
- Establish a cross-functional group that analyzes and develops your pricing strategy continuously.
- Build a story that clearly conveys the value your offer provides to customers and helps salespeople take pride in the price.
- To find the right pricing model, analyze various data points such as market data, competitor data, and customer data.
- In a more mature organization, CPQ is a good tool to ensure that the organization follows the pricing strategy, leading to the desired outcome being achieved.
"Dare to be bold and stand by your pricing, supported by a compelling story about the value your offer provides to customers." - Joakim Karlsson, Almi Invest
Watch the full webinar on demand to learn more about how you can take control of your pricing strategy, which affects your business, and gain insights on how to avoid costly mistakes in your quoting process.