Blog

Over the past three years, I have attended more functional and industry events than I have over the prior fifteen combined. I’ve attended these events for two main reasons: They are great networking opportunities, especially for a partner of a boutique price and value consultancy. Most importantly, these events allow me the opportunity to hear [...]

There have been any number of references to pricing power in the last few days, quoting the comments of both Seth Godin and Warren Buffet. They are both on target with the advantages such companies experience. However, they do not tell the whole story. Simply put, price power refers to the impact your pricing has [...]

There has been much press on rising commodity costs and talk of strong inflation. Recent cost trends, such as cotton hitting a 140 year high, raise the specter of a sustained period of inflation.  Yet, many businesses still face a turbulent and uncertain operating environment.  This is certainly true when it comes to operating costs. [...]

I went to the CFO Corporate Performance Management conference earlier this week in NYC.  I was glad to see that attendance seemed to be higher than it has been in previous years.  There were probably two major reasons which contributed to this:   1. The economy has started to show signs of recovery. 2. This [...]

There are several considerations when looking at indexing contract pricing. First, there is uncertainty in including an index. There is risk assumed by both parties in the forecasts on a number of issues. These include labor availability, fuel costs for transport of raw materials, and commodities pricing. The forecasted expectations may work against either party [...]

One of the most common tactics used in contracts are economic price adjustment clauses. These are clauses in contracts which trigger price changes to goods or services in the contract. They are used to: Protect the customer from adverse price actions such as price increases or unanticipated deflation. Take proactive advantage of expected price changes. They [...]

The 2010 business year is coming to a close over the next few weeks, with many companies making last minutes adjustments to their 2011 operational plans. With that in mind, we are beginning a series of short discussions simply titled “Leaving Money On The Table“, covering relevant operational pricing issues. Pricing has been among the most difficult [...]

Changes to the competitive environment happen every day.  The ability to understand and interpret these changes is an important part of strategic planning. At the micro level – every opportunity to sell can be a win or go home situation.  Zoom out a little and that’s not necessarily the case.  Knowing how to understand what [...]

There are a number of different ways a business can improve their ability to meet the needs of new and existing customers: Sales and support practices Various product options Delivery times and methods Terms Customer insight determines which one or what combination is used.  The gathering of customer perspectives (what’s important to them and how [...]

Many businesses are now at the busiest part of their annual planning cycle. Much like the past two years, they face a turbulent and uncertain operating environment. This is certainly true when it comes to operating costs. Traditionally, pricing has considered cost as an exogenous element, both in planning and execution. Pricing has incorporated this [...]