What should should you be doing in 2019 to build and activate pricing as a driver of business growth? A combination of new capabilities, market research and decisive action is needed. The outcome can be greatly improved performance.
The CEO should play a leading role in pricing strategy and demand a high level of execution. Pricing is too important to leave to experts. It is one of the most powerful strategic levers a business has. What are the ten top questions a CEO can ask to help improve pricing practices at their company? The Ibbaka Self Assessment tool will help you to benchmark your company on best practices.
Ibbaka helps you execute on value-based pricing. This is a pricing strategy where your price is based on the differentiated value you provide to your customers. The alternatives to value-based pricing are cost-plus pricing (good for contracts where the deliverables are poorly defined and controlled by the client), transactional pricing (what happens with commodities), market following pricing (if you have little pricing power) and various forms of auctions (growing in importance as M2M pricing becomes more common).