The pricing function needs to be a crucial cog for any company’s corporate strategy. However, there is often an ambiguity regarding how exactly must pricing be fixed. Options abound between service centre, strategic partner, business unit or sales for price determination. A study was then conducted by LinkedIn to understand what would be the best recourse to this. It was then understood that there are four key components to driving the right pricing decision. These are- structure, skills & capabilities, decision rights & influence and size. After much deliberation, it clearly emerged that pricing must be the function of the strategic business partner and not the service centre or any of the other options touted. Not having a pricing centre is not an option worth considering. The CEO must have the ultimate decision-making powers on this followed by the marketing team, business units, board and finance. Sales and product management stood bottom in this ranking.

Source:https://www.linkedin.com/pulse/why-your-pricing-function-must-act-strategic-business-amadeus-petzke/

Uploaded Date:17 October 2018