Pricing is increasingly viewed by companies and investors as one of the quickest and most viable ways to grow profits. A 1% increase in realized pricing has been found to increase operating profits by 11.1% on average, and was the most effective way to grow operating profits. The ROI of pricing projects or pricing offices typically range between 10:1 and 20:1
However, surveys have shown that 70% to 90% of consulting projects are never implemented. This lack of execution is not from a lack of desire to enact these strategies, but because it is very hard to implement strategies into a living organization.
Successful implementation requires executives that have an understanding of strategy coupled with a pragmatic understanding of how organizations work. This means leaders who can:
- Balance the trade-offs required to get buy-in and acceptance across the functional groups
- Present to Senior Leadership one hour and roll up their sleeves to work with the functional teams the next
- Translate a desired strategy that lives in a presentation binder into a business reality
The Pricing Office team is comprised of pragmatic strategists. For a good part of their careers, they worked at top consulting companies developing strategic plans as consultants. But where we are different is that we also have experience at Fortune 500 businesses implementing pricing strategies and establishing pricing offices.