Recent merger events of key customers for FMCG businesses have proposed vast challenges on both pricing and investment. Tesco-Booker, Coop-Nisa, and the proposed Sainsbury’s-Asda union could leave suppliers with substantial bills that significantly impact their P&L.
In response, suppliers we work with are looking to implement transparent and defensible pricing structures, so they can minimise the impact of any further consolidation in the industry. Whilst many companies have the expertise and experience (if not the dedicated resource) to design a new pricing structure, it is the execution phase where they come undone, often resulting in negative fallout with customers.
To win a successful implementation with customers, suppliers should collaborate with partners who prioritise the execution phase throughout the project.
The most effective pricing structures provide customers the chance to benefit from collaborative terms that offer clear rewards for specific actions. If designed correctly, customers will welcome the chance to build their business with you through a specific set of criteria. Ensuring the design is aligned to your customer strategy will give you the best chance of success during the execution phase.
Your team must be on board with any new pricing structure, after all they will be the ones who need to take it out of the office and make it a reality. Bringing all stakeholders along the journey and ensuring they are offered a chance to input into the vision will bring greater levels of buy in. Stakeholders like to see their ideas incorporated, but they also need to understand why any seemingly great ideas they have are not included in the final design.
When it comes to execution, preparation is everything. Your new pricing structure is not a project, it is a new way of working, and only by conveying this message will you achieve success over a multi-year journey. Roleplay, objection handling, and customer Q&As are all essential elements to prepare your teams for success. You are only as strong as your weakest team member.
At Acumen, we know what it takes to implement lasting change. If you wish to learn more about what we do please get in touch with our experts and email us at email@example.com for more information.