Progressive Maturity Model for Pricing Actions PPT
This PPT slide, part of the 63-slide Pricing Strategy Implementation Toolkit PowerPoint presentation, presents a Pricing Action Maturity Model, which categorizes key practices into 4 maturity levels: basic, emerging, established, and superior. Each level outlines specific characteristics across 4 dimensions: Pricing Procedures, Roles & Responsibilities, Metrics & Rewards, and Tools & Technology.
In the Pricing Procedures section, the basic level indicates that employees must follow a fixed price list, requiring supervisor approval for deviations. As organizations progress to the emerging stage, pricing criteria become more defined, allowing for documented escalation processes. At the established level, acceptable price ranges are set, incorporating various factors like volume and freight. The superior level showcases a pocket price model, enabling frontline employees to make rapid pricing decisions with clear guidelines.
Roles & Responsibilities highlight the evolution of accountability in pricing decisions. Initially, responsibility is vague, often shared among multiple individuals. As maturity increases, roles become clearer, with one accountable person per product line. At the superior level, a pricing manager or committee proactively sets and communicates guidelines, enhancing decision-making efficiency.
Metrics & Rewards focus on how sales incentives evolve. The basic level relies on volume-based incentives with aggregate margin tracking. Emerging practices begin to consider profitability, while established metrics evaluate profitability at a more granular level. The superior stage introduces varied incentives based on individual transaction contributions.
Finally, Tools & Technology illustrate the progression from basic paper-based systems to integrated pricing tools within a CRM system. The superior level emphasizes robust pricing tools that allow real-time calculations, integrating back-office systems for comprehensive cost and supply management. This model serves as a roadmap for organizations aiming to enhance their pricing strategies.
This slide is part of the Pricing Strategy Implementation Toolkit PowerPoint presentation.
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