What's the challenge?
Most consumer goods companies are grappling with a 'spaghetti' of inherited pricing and trade terms agreements that can feel like a 'can of worms' to tackle and have often not been reviewed for many years. Without a clear, consistent structure to pricing, consumer goods companies risk causing confusion over new product pricing and losing money through ineffective pricing and unconditional trade terms.
A structured pricing framework will help you:
Our approach to structured pricing follows four key phases:
Picture of today
Gathering of core financials and running of interviews to better understand the business, vision & current position
Create the shape and prioritisation of investment levers & definition of vision margins
Scale of change & design
Iterative modelling of the new structure & quantification of the impact to customers
Implementation & training
Putting together the selling story, planning the implementation & embarking on a series of training and roleplay sessions
Do these issues sound familiar to you?
Legacy pricing structures
Indefensible pricing & unconditional trade terms
Proliferation of investment structures
No relationship between level of investment & scale or strategic importance of customer
With a structured pricing framework:
Gain a platform for future growth of the business
See a clear performance-based pricing & terms framework for teams to operate within
Reduce pricing risk across channels & markets
Gain the ability to drive profitable growth, optimise mix and improve ROI on trade spend