Quantify the factors that determine how comparable customers obtain disparate pricing structures.
Equity in price among comparable customers goes beyond fairness to be a direct measure of the execution of your pricing strategies. Peer-to-peer pricing analysis can uncover disparate pricing structures and the underlying reasons as to why they occur, enabling you to take direct actions to improve profitability.
Peer-to-peer pricing analysis must be measured at the pocket price level and not at the invoice level. This is due to the fact that your customers are actually negotiating beyond invoice, to include items and services such as freight, expected volume discounts, rebates, warranty, returns, post-delivery services, etc. These demands are what create much of your overhead costs, and must be driven to the consuming customers to obtain a complete picture of their effective pricing.
Peer-to-peer pricing analysis is an effective and fundamental tool to support the achievement of your pricing strategies. Quantalyst Consulting can provide you with the ability to complete this important component.
Contact us to learn more about how Peer-to-Peer Pricing Analysis can help your firm.
