Strategic Pricing Solutions

About SPS

Strategic Pricing Solutions is a new breed of pricing consulting firm helping customers develop data-driven pricing strategies to increase shareholder value. We combine behavioral economics with quantitative market and transaction analysis and teach customers how to identify specific, actionable price changes to increase profits while improving market competitiveness.

The Importance Of Pricing

Most organizations think about pricing as a cost-based exercise or a market driven result they must accept. But in fact, it is one of the most powerful profit levers a firm can manage. As seen in Exhibit 1, improving price has more impact than any other area. Even small price improvements can result in substantial profit increases.

How we add value

Strategic Pricing Solutions helps customers organize and manage complex pricing environments. We:

• Evaluate existing pricing strategies and
  tactics
  • Identify strengths to build on and
    opportunities for improvement

• Develop value-based pricing frameworks
  • Market conditions & competition
  • Transaction pricing & customer sensitivity

• Strategically segment customers and
  products
  • Market and behavioral differences
  • Product value differences

• Offer structures to set price standards
  • And mechanisms to enforce them

• Develop exception management processes
  • Including off-invoice concessions

• Provide change management support
• Develop buy-in to pricing strategies
  throughout the organization
• Provide enabling tools
• Ingrain sustainable strategic pricing
  capability
• Improve the bottom line by 1% - 3% of sales