Price a 'quick win'

In the context of the recently released UK inflation figures, the continual downward pressure on selling prices in many sectors, and there being fewer big opportunities to re-engineer processes and costs these days, can a price reveiw really yield a quick financial benefit to a company?

Absolutely.

Companies often don't give pricing the focus it commands in terms of it's ability to deliver straight to the bottom line without the aggravation of re-structuring, HR costs, layoffs or severance.

Why?

- Because sales departments or front line staff rarely advocate price increases
- Finance departments often don't see it as their responsiblity
- Senior Managers are often remote from the 'front-line' and detail
- There isn't financial rigour around the net profit figures of products and services

So,

- Challenge the price options available
- Understand competitive relationships
- Focus on the micro- items, not just ranges
- Test market price perceptions
- Exploit any structural benefits, such as supply chain etc
- Identify if your proposition can sustain an increase through innovation, services etc

Reducing prices demands significant increases in volumes to retain profitablity. So challenge what the effect a new pricing strategy will really do to your 'bottom line'.

In a business world where 'quick wins' are continually being sought, pricing strategy is all too often overlooked.