Pricing Done Right

CHAPTER 9 A Decision You Control

This Value-Based Pricing Framework identifies pricing decision points across the corporate life cycle and the offering life cycle. It also identifies pricing decisions and actions that cross departments. The Value-Based Pricing Framework provides an organizational route to informing those decisions and taking actions with facts and insights. And, it provides a model for developing the organization for driving better pricing. This Value-Based Pricing Framework was developed by researching leading firms and academic literature. And the results of its application have been consistently positive.

Using this framework starts with an executive decision: Where am I today and where do I want to be tomorrow?

Yes, it does require a CEO-level decision. Motivation and continued pressure from the CEO down has been shown to be the key to propel firms toward pricing excellence (Johansson et al. 2012; Liozu et al. 2011).

Some firms have implemented much of this framework and have consequently achieved very positive results. Other firms are just starting out. In both cases, this framework can be used to help drive an organization forward.

Pricing excellence is a journey. It cannot be achieved in a single act. Many firms took years to decades to develop their pricing competency. And while pricing can be improved in a single year, I have never seen the journey to pricing excellence completed in a single year.

In starting the journey, a firm does not have to start ...