LeveragePoint Value Management Blog

Value-Based Pricing Resources Online

LeveragePoint continues to build the best collection of on-line resources on value-based pricing and how to apply this approach to product development, marketing and sales.

Our March 2011 webinar with Dr. Tom Nagle Dealing with Rising Commodity Prices is now available online. In this webinar Tom applies his long experience to the strategies and tactics companies need to apply to deal with the long-term uptrend in commodities prices.

Stephan Liozu, CEO of Ardex America Inc. and one of the few CEOs to be a CPP (Certified Professional Pricer) has shared his reseach on PRICING ORIENTATION IN INDUSTRIAL MARKETS: THE ORGANIZATIONAL TRANSFORMATION TO VALUE-BASED PRICING. He is leading his own organization's transformation to a value-based pricing strategy and is doing research into the field for his Ph.D. Stephan will be giving a keynote at the Spring Professional Pricing Society conference this coming May in Chicago.

LeveragePoint continues bring new capabilities to its collaboration platform for value-based pricing. In March we have added new functionality around configuration of value-based selling tools for the salesforce.

LeveragePoint will be exhibiting at the Spring Professional Pricing Society conference and we look forward to seeing you there. 

 

 

March Webinar - Dealing With Rising Commodity Prices with Dr. Thomas Nagle

 Special Guest: Thomas Nagle

Best-Selling Author of The Strategy and Tactics of Pricing

Register Here for the webinar on March 23 at 3:00 PM EDT, Noon WDT.

With raw materials prices increasing across a broad range of commodities and further inflation likely as the world economy continues to recover, maintaining margins is increasingly difficult. The higher and more frequent cost increases become, the greater the adverse effect from delays in passing them through. Still, in competitive industries, no competitor wants to take the lead in raising prices and the ire of customers.

In this 30-minute webinar, renowned pricing strategist and Monitor Partner Tom Nagle shares his perspectives on how organizations have succeeded in meeting this challenge in the past.  

If you are interested in this topic you may also want to follow the discussions on LinkedIn:

• Professional Pricing Society
• Network of Pricing Champions

Value-based pricing software like LeveragePoint can be used to understand the impact of changing commodity prices on the value of your solution for your customer in a time of rising commodity prices.

 

Webinar Value-Based Pricing in Marketing & Sales Communication

February 23, 2011 - Watch Now

In our February 2011 webinar, Jay Manson and Ed Arnold discuss how to communicate bottom-line value to your customers. They illustrate why it's essential to quantify the two or three things that allow you to beat your competition in the sale and to win the pricing negotiation.

Pricing is the most powerful lever that companies have to improve margins, it is a lever much more powerful that cost reductions. For a typical Fortune 500 industrial company, a 5% increase in price realization leads to a 50% increase in the bottom line (See Figure 1).

Value-based pricing is about a lot more than just setting a price. It covers the full value creation, communication and capture cycle. With value-based pricing, product development is focused on creating differentiated value; marketing identifies the segments and competitors that get the most differentiated value from the offer; pricing is able to connect the price to the value; and sales is able to negotiate a price based on value in the sales negotiation. (See Figure 2). LeveragePoint provides modules for the full value-based pricing process: Value Modeling, Price Setting, Value Communication, Sales.

During the webinar, participants weighed in on two polling questions. When is price introduced during the sales process? (Figure 3) How does marketing communicate the customer-specific value proposition? (Figure 4) To hear the commentary, view the webinar now.

 

 

Case Study "Extending the Product Lifecycle" Using Value-Based Pricing

In our January 2011 webinar, Value-Based Pricing in the New Product Development Process we introduced a case study from a chemical materials manufacture to show how insights from value-based pricing can help companies to extend the lifecycle of existing products and win higher prices. This case study is now available on the Resources section of the LeveragePoint website.

Best practices for product management are that companies

• incorporate a value-based pricing mindset;
• tap into the enterprise’s expertise across functional silos;
• validate differential value using customer input; and
• use dynamic models to fine-tune the value proposition.

The manufacturer in this case study faced relentless pressure when dealing with B2B procurement department buyers. They operate in an extremely challenging environment where there is a laser-beam focus on reducing per unit costs. For procurement, the logic is brutally simple: "Reduce the cost of your material inputs, year after year. Or else." Fortunately, the product development team succeeded in reformulating one of its products to deliver a new performance benefit – 20% less material use. This seemed to be a very clear-cut value driver that procurement would embrace. Yet in spite of this innovation, the team had misgivings. How much of this value would procurement simply demand for itself? What if less efficient competitors responded aggressively by cutting their prices? In the worst case scenario, the manufacturer would be unable to recoup its investment in this new innovation. Read on to find out how this company was able to communicate and capture value in an important RFP.