Pricing & trade terms optimisation
We work with consumer brands to realign their pricing and investment structures to their strategy, driving significant process efficiencies and improving ROI on trade spend
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