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Three Common Reasons Revenue Management Initiatives Fail

Three Common Reasons Revenue Management Initiatives Fail
Many companies begin the journey of revenue management with all the right intentions—selling the right product to the right customer at the right time for the right price. However, when going from intent to execution, their potential for success is often marred by one or a combination of three scenarios. Michael Stanisz of Revenue Management Labs shares the strategy.  Continue reading

Increase Profits For Companies With Lydia DiLiello

Improve pricing focus for increased profits We chatted with pricing expert Lydia DiLiello about ways to increase profits for companies and how to improve their pricing focus. When companies don't have a clear directive, it becomes difficult to increase profits. Isn't that what it's all about? Lydia DiLiello hopped on Twitter to provide strategic answers to questions including:
  • Should companies be focused on top line revenue or bottom line profit?
  • Can companies increase profitability with their poor pricing practices?
  • What impact does dirty data have on a company's ability to increase profit?
  • How can companies use price lists to increase profitability? And more!
View the full #PricingChat recap below:
Lydia DiLiello is the Founder & Principal of Capital Pricing Consultants and Professional Pricing Society Board Member. Have more questions about this pricing topic?
Send her a tweet @LydiaDiLiello.
Log on to Twitter to join the #PricingChat conversations in real time. Make sure to follow @PricingSociety and visit our website for the latest and greatest pricing industry information.
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Current Trends In Pricing Featuring Lydia DiLiello

We talked with featured pricing consultant Lydia DiLiello about the "Current Trends In Pricing" in a NEW #PricingPodcast! We're excited to feature pricing experts and share business insights in our #PricingPodcast series! This latest edition features PPS Board Member and friend, Lydia DiLiello. Lydia took time before her upcoming appearance during #PPSLV16 to share an expert opinion on the current pricing industry landscape. Listen to the exclusive insight in our #PricingPodcast. Click the image below to listen to the #PricingPodcast audio: Pricing podcast discussing current global trends in pricing

About Lydia: Lydia Di Liello is the founder and principal of Capital Pricing Consultants L.L.C. a Revenue Management consultancy dedicated to improving profitability for its clients. She brings more than 22 years of global revenue management, pricing expertise and business leadership experience to her clients.

Spending her corporate career in B2B, Di Liello’s experience working in 16 countries with global Fortune 500 companies and mid-size privately held firms provides a breadth of knowledge and an understanding of the unique challenges her clients face. Her leadership roles have included manufacturing, pricing and procurement. Di Liello earned her MBA from The Youngstown State University and is a prominent member of the Professional Pricing Society Board of Advisors and regularly presents at Conferences. She also frequently contributes to pricing industry publications including The Pricing Advisor, Pricing Brew and The Journal of Professional Pricing.

For more information about pricing strategies that will better impact your business, contact Lydia directly with questions and comments!


Lydia is also a featured Workshop presenter during the upcoming 28th Annual Fall Pricing Workshops and Conference in San Diego.

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Stephan Liozu Talks Value-Based Pricing

We're back with another #PricingPodcast - this week Stephan Liozu talks Value-Based Pricing in business! We chat with pricing expert and author Stephan Liozu, and he answers some of the more popular questions surrounding Value-Based Pricing including,
  • What is value-based pricing?
  • Why is it more than a pricing strategy?
  • How can companies deploy new strategies and who should be involved?
  • How can companies gain a jump start?
Listen to Stephan Liozu discuss value-based pricing strategies for business and how to successfully implement to see results. (Click the image below for the #PricingPodcast) Stephan Liozu #PricingPodcast April About Stephan: Stephan Liozu has over 20 years experience in business, working for both Fortune 500 companies and family-owned businesses. He specializes in crafting and designing unique innovation and business strategies leading to differentiated business models. Liozu moderates brainstorming, mind mapping and creativity sessions with executives, partners and customers to generate ideas, value models, value propositions and innovation strategies. Liozu holds a MBA in Marketing from Cleveland States University (1991), a European Master degree from Toulouse IAE School of Management in France with a major in Innovation Management (2005) and attended The General Management Program (TGMP) at Harvard Business School (2005). He earned a Ph.D. in Management from The Weatherhead School of Management at Case Western Reserve University. Liozu is a frequent guest lecturer at Business schools and Universities around the world, often teaching innovation, pricing and value management, leadership approaches and global business strategies. Click to learn more.   Stephan is a featured Workshop Speaker during the 28th Annual Pricing Workshops and Conference in Miami, FL May 2-5 2017! Stephan Liozu will lead a Workshop during #PPSMIA entitled: "Dollarizing Differentiation Value" Register & book rooms for your team today!

What was your favorite part of the #PricingPodcast interview?

Share with us below!

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Take A FREE Price Optimization Assessment With Vistaar!

One of our Corporate Sponsors, Vistaar is offering friends and members of the Professional Pricing Society a FREE Price Optimization Assessment! Vistaar provides solutions that enable companies to optimize prices and drive profitable growth through improved planning, selling and tracking processes. Learn how to price long-term agreements that meet revenue, margin, and customer specific objectives with an Agreement Price Optimization (APO) SaaS Solution! B2B organizations and sales professionals: take advantage of the FREE APO Value Assessment, designed to identify 200-400 bps of actionable value in just weeks! Click the image below to start the FREE Assessment for YOUR company today! pathupdated Thanks to our friends at Vistaar and happy pricing! Continue reading

3 Ways Companies Overlook Pricing

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Everyone in business knows it’s all about maximizing profits. And nothing has as much potential impact on the bottom line than smart pricing; the majority of incremental revenue from a price increase flows directly to the bottom line. Indeed a one percent increase in price for most companies often results in a 10% or greater increase in profits. Yet most companies fail to give pricing consideration the time and dedication needed for optimum effect. We believe there are three reasons why many companies give pricing decisions insufficient attention:
  1. They often wrongly believe there is not much flexibility in price decision making; that they need in almost all cases either to match competitive pricing or mark-up a fixed percentage from cost of goods to meet pre-set gross profit goals. Many companies have a built-in inertia and resistance to innovative pricing thinking, as well as a lack of awareness as to what tools and techniques are available for measurability and smart decision-making.
  2. Companies with strong sales-driven cultures often, by default, place paramount importance on revenue and unit volume to the detriment of profitability. This is typically because sales quotas are based on revenue and volume, not profitability. Sales people can often aggressively push through their points of view in the absence of a smart strategic-pricing dialogue.
  3. Consumer marketing thinking infects B2B pricing decisions. Many firms in all types of industries recruit marketing talent from large “academy” consumer marketing giants. These companies typically market commodity products like soap or diapers with unique brand narratives. These high turn, heavily advertised products generally are more sensitive to pricing swings and operate in a more complex environment involving coupons, premiums etc. It’s a far different world than most B2B environments, and the pricing experience to higher ticket or service businesses may not translate well.
So what can be done to create the right environment that will support optimal pricing decisions in B2B companies? It begins with leadership from the top, of course, and a good place to start is with the creation of a senior position dedicated to pricing strategy. Some firms already have this position, but a high majority of companies with under $500 million in sales don’t. This person would make himself knowledgeable on the very latest pricing tools and strategies, and serve as a counterpoint to the three pitfalls noted above. Enrollment in regular pricing industry conferences — such as those produced by the Professional Pricing Society — is a good place to start. There the pricing executive could share experiences with hundreds of other dedicated pricing professionals and become well versed in leading-edge diagnostic tools that can monitor the impact of pricing changes in real time. He or she could also learn how to segregate different market segments for optimal pricing and profitability. And perhaps most importantly he could learn interpersonal tactics on how to change corporate culture with regard to pricing, without ruffling too many egos. Short of attending a conference there are webinars, case studies and white papers to be devoured and digested. Pricing is too important to get passed over. While some companies have more latitude than others, you don’t have to have the brand cache of an Apple to get the maximum value for your products. What’s needed first and foremost is a respect for the benefits of an optimal pricing strategy, a curiosity for the latest pricing tools, and the willingness to affect change in your company. Paying attention to pricing can have a profound effect on profit, without the cost or risk of adding new product lines or entering new markets. About Kevin Mitchell Kevin Mitchell is President of The Professional Pricing Society (PPS) and Publisher of The Pricing Advisor monthly newsletter and the quarterly Journal of Professional Pricing. Kevin is a frequent speaker at pricing conferences and events in North America and Europe, where he often discusses trends and demographic changes within the pricing discipline. Before joining PPS in 2007, he worked for 11 years in various financial management fields with Colgate-Palmolive and General Electric. He earned an MBA in marketing from The William E. Simon Graduate School of Business at the University of Rochester, and a B.A. in economics and english from Duke University. Mitchell resides in Atlanta. His hobbies include music, cooking and sports. Continue reading

The Power Of Pricing...

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"What is pricing?!" "How does pricing work with my business structure?"
Pricing opportunities are everywhere, yet they sometimes seem to be completely ignored when they could easily make or break a business. Everywhere I look, I see these opportunities. My dry cleaner uses pen and paper for its order tracking system, and I wonder why they don’t offer price/product differentiation. Instead of a single price offered to get clothes dry cleaned, they could offer a tiered service at a premium. My gym next door is usually empty on weekdays at 10am, so they could offer a weekday 8-5 membership at a discounted rate. Consider the travel industry, where many airline, hotel and cruise businesses share similar customer numbers. Larger hotels leverage revenue management solutions to better their business, but boutique hotels can take advantage of this too. Online travel agencies or global distribution systems all have access to these boutique hotels’ inventory information. Why haven’t they offered to handle their revenue management needs for a fee? There are many opportunities within various industries to leverage the power of pricing solutions, but many do not. Why? One reason is the concern about complexities of pricing education. That can be quelled with knowledge about education offerings and the many available pricing solutions. Small changes in price can lead to huge increases in profitability, which has been demonstrated and well documented numerous times. What is the risk involved in offering a better product at a higher price? You can also estimate the potential gain from offering speedier dry cleaning services for a fee by gathering information about customers who request quicker turnaround times. In the case of the gym membership, it should be very easy to observe from check-in data that your gym floor is fairly empty on weekdays. Understanding the value in mitigating risk may require investing in new technologies and pricing education, but the investments reap large rewards in the end (revenue increase). Companies only need vision, a continued interest in the changing technologies and data analysis, and the understanding that pricing is a critical component in business success. How is your company levering the power of pricing? Leave us a comment below! Continue reading