5-Steps to Double the Net Worth of Your Company through Value Based Pricing
Recently, executives have been telling us that pricing is playing a larger strategic role in their businesses as they seek to improve profitability in new ways. Companies are searching for pricing experts who can make the most of new and established software and develop new, creative pricing strategies.
Our recruiting methodology enables us to help you fill your new pricing positions with fewer interviews, while virtually guaranteeing that the person you hire will do the job well enough to be promoted. Here is what our experience will mean for you:
- We understand the new, dynamic role pricing is playing in the corporation.
- We will send you people who know how to deal effectively with the rapid changes which are affecting pricing models:
- The huge amount of information that is instantly available via the internet and its effect on pricing.
- The rise in power of corporate procurement groups, which has put additional downward pressure on prices.
- The rises in commodity costs.
We know how to find people who know how to use ERP and other pricing systems to provide insights into customer and product profitability.
Pricing requires an uncommon mix of skills in one professional: hard skills (IT, software, project management) and soft skills (listening, trust building). Many people have one strength or the other, but few people have both. Yet, it is the combination which is required for a strategic pricing function to successfully drive profit improvement.
We are particularly well positioned to help companies to recruit the right personnel with the right combination of skills because we use a problem-solving methodology for searching.
Below is an example of a search we recently completed for a pricing executive to help get their corporate turnaround back on track.
DIRECTOR OF STRATEGIC PRICING
Situation: Our client, a large packaging company, was in the midst of a successful project to re-energize the company and get sales and profits growing. They had adopted Lean Manufacturing, implemented SAP, improved new product development and undertaken some strategic acquisitions. The company was showing positive results when their profits were badly hurt by a significant cost increase in their primary raw material resin, a petroleum byproduct.
Circumstance: Corporate management tried unsuccessfully to get the operating groups to raise prices. The divisional pricing people were part of the problem, not the solution.
An outside consulting firm suggested the company implement the Vendavo pricing software package and create a new corporate role, the Director of Strategic Pricing. Corporate management, IT, and the operating personnel all had different ideas about who would be the right person for this job.
Solution: Bond & Company soon realized we needed to find an individual who would need to appeal to each of these different constituencies if he (or she) were going to be hired, and more importantly, succeed in this newly created role.
We recruited a pricing professional with a strong track record of quantified success. He was working as a consultant but wanted to return to a corporate role. He was a BS Chemical Engineer who had previously worked in sales and had industry-related experience, both as a consultant and an employee. He was part of two successful Vendavo implementations. The interviewing process was long and not dissimilar to 10 blind men describing an elephant, but it was ultimately successful.
Over the past year, the person we found has not only implemented most of the elements of the software package but has also helped effect a cultural change to emphasize profitability over sheer volume and participated in the development of a new compensation plan.
Our client’s plan is to generate $100 million in realized prices increases in each of the next three year as they build on the framework this individual helped establish over the last year. As the Deloitte study shows, pricing can pay BIG DIVIDENDS.
Let us help you make pricing the powerful profit driver it can be. Utilize our experience and expertise in this rapidly changing specialized area. We can help you and your company succeed. Please contact us.
Let us help you turn your pricing problem into an opportunity. Contact Bond & Company today!