It's a big goal—and pretty elusive. So, how can you get there?
Cost-plus pricing models have often been built around the cost to manufacture a product. While this approach has been highly effective for managing margin, it only works when there is enough competitive advantage to set the market price for a product.
Value-based pricing and competitive-based pricing (in addition to cost-plus pricing) equally put you at risk for leaving revenue on the table. These pricing strategies leave sellers at risk for undervaluing inventory.
Reducing price variability and achieving sustainable increases in total revenue requires sellers to introduce automation in six areas of pricing and processes.
There is a wealth of knowledge to be had from historical sales data and dormant intelligence.
"1% improvement in price has a significantly greater impact on profit than lowering operating costs or increasing sales volume." - AMR Research
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