In a highly-competitive marketplace, accurate and nimble product pricing is essential to meet market share and profitability goals. Most companies have the appropriate financial record-keeping and controls to meet accounting and audit requirements.
But, remarkably few companies have the right management tools for fast and effective decision-making. Product-pricing models exist in the market, but most companies need these solutions tailored to their needs.
Senior management and I talked through their requirements, to make sure the end-product would give them the flexibility to manipulate multiple key factors easily. I spoke with Accounting and Operations to understand their current processes, so that the new financial model wouldn’t become an administrative nightmare to maintain.
The best financial models are worthless if they aren’t supported and maintained regularly. I reviewed my proposed pricing model with all stakeholders, confirming it would meet senior management’s needs and also gaining buy-in from staff that would need to maintain it going forward.
Senior management was able to make product-pricing decisions quickly and accurately, leading to increased market share and a $200,000 reduction in operating costs.
Company Executive Vice President said: “We now can adjust our product pricing as often as the market demands and stay ahead of our competition. We’re very happy with the solution Carolyn gave us.”