Pricing has not traditionally been prominent on the Board agenda. As a consequence, most businesses have not invested in a clear pricing strategy and have not developed clear pricing roles, processes, controls, tools or training. KPMG believes better pricing is the fastest route to revenue and profit growth.
We help businesses achieve this by focusing on the three key pricing levels:
- Pricing strategy: - Aligning the price and offer with the value created for customers, relative to competitors.
- Pricing policy: - Defining pricing processes and controls to ensure consistent, high quality pricing decisions.
- Pricing capabilities: - Developing a strong pricing culture with the skills, tools, data and metrics to sustain pricing excellence.
In many businesses the emphasis is shifting from cost reduction towards pricing and margin management. In our 2013 pricing research, over 70 percent of companies said they could increase profits by at least 5 percent through more effective pricing and 40 percent believe they can generate at least a 10 percent profit improvement.