Double loop pricing
Make sure that you capture value with your pricing
Nothing is more important for your value capture and your profits than your pricing. Reason enough to do it right. From strategy to execution and monitoring. Supported by all internal departments, involved in value creation and customized pricing dashboards.
By creating and implementing your business specific pricing toolbox for commodity, specialty or solution businesses, our Double Loop Pricing helps you to manage your pricing challenges and to grow your margins. Our pricing consultancy and our online and offline pricing coaching and training will especially align Marketing and Sales.
You will be amazed by the untapped pricing potentials you will detect. And you will discover that it’s much less complicated than you think.
What Double Loop Pricing is all about
Within the chemical industry four out of five companies still do cost plus pricing. Which means that they are leaving huge differentiation and profit potentials untapped.
Our Double Loop Pricing helps you to cope with your pricing challenges by creating and implementing your business specific pricing toolbox and BI tool based pricing dashboard for your commodity, specialty or customer solution businesses.
Select from a broad range of powerful tools from Value Pricing to Supply & Demand and Competitor Pricing. From pricing strategy to price determination, price execution, pricing psychology and price monitoring. And make them fit and stick to your specific business, based on a value focused alignment between all functions involved in value creation.
But since a fool with a tool is still a fool, we also train and coach your price deciders and pricing managers in
– Understanding your pricing power,
– Pricing strategy,
– Pricing methods (like Value Pricing or Transactional Pricing),
– Price differentiation,
– Service pricing,
– Risk management incl. formula pricing,
– Price and approval processes,
– Internal and external price and value communication,
– Price monitoring and controlling,
– Pricing governance and pricing guidelines.
This is how Double Loop Pricing makes sure that you will capture your value.
From commodity to specialty and solution businesses and from pricing strategy to execution and price & profit monitoring: Our Double Loop Pricing makes sure that you fully capture the value you are providing.
Meaningful pricing strategies should first of all realistically specify your price positioning: For example, do you want to be premium or economy?
According to your market environment and the degree of commoditization, you should also decide which pricing methods and which pricing tools fit best to your business, your people and your culture.
On top of that, pricing strategy is about developing a clear understanding of your pricing power in your different markets.
Your pricing approach will give your price deciders additional guidance: Do you want to be a price leader or follower? Should your pricing support profit or volume growth? Should you therefore target higher or lower price levels?
And you should maybe rethink your price differentiation and make it more systematic, as a „naturally grown“ price differentiation can get pretty risky.
By getting these questions answered we help you define your pricing strategy, which will provide guidance to your price deciders.
Price Determination and Pricing Tools
We help you to build and implement your business specific pricing toolbox.
Select from a broad range of powerful tools from Value Pricing to Supply & Demand Pricing and Competitor Pricing, and adapt them to your specific business needs.
When designing your toolbox we make sure that its complexity can be effectively managed by your price deciders. Because it doesn’t make sense to spend your time on tools that nobody can or will ever use.
We support your toolbox design by involving Sales from the very beginning. This makes sure, that your toolbox will work and is applied in practice.
In price execution, you have to differentiate between specialty and commodity businesses, because selling, value communication and negotiations require completely different approaches and mindsets for these different businesses
We support your price execution with our business specific Value Selling and negotiation trainings & coaching, so that you can sell the price instead of selling by price. Additionally our pricing tools in our surfshop do a great job here, as they support your sales force in setting the right price and controlling price and volume effects on profits.
Furthermore, we help you with your value based price communication and offer design.
Price Monitoring & Pricing Dashboards
You cannot manage pricing properly without measuring your price execution and its effects on profit, margins, volumes, and pricing structure.
This is where tools like Price Margin Monitoring, Price Scatterplots, Margin Deviation Analysis or price monitoring down to the order level can do a great job.
We design and customize CLIK-based pricing dashboards for you, which draw the data from your ERP system and which will provide you with all the price and margin analysis you and your price deciders need.
Always based on up to date data. Every day.
With this kind of pricing dashboard there is no need to wait another 3 weeks for next report: Get the analysis when you need it and say good-bye to reports.
With or without dedicated pricing managers: your pricing processes, your price organization and your pricing roles and responsibilities should be clearly defined.
And your target agreements, incentives and bonus programs must be in line with your pricing strategy.
Internal pricing guidelines help you as a reference to make things stick and to clarify the way you are doing pricing in your business. 100% compliant with antitrust laws.
We help you to optimize your price organization, your pricing roles and responsibilities, your internal pricing processes as well as your pricing culture. And we support you in ensuring compliant pricing processes.