the price isn't right - pricing is the most important driver of long-term profitability and...

0 Vision Technology

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SELECTED VIEWS AND OPINIONS FROM OUR BRIGHTEST MINDS

My name is Robert Browne and I’m a pricing specialist and

partner in KPMG’s Strategy Group. Since starting out in the

early 1990s as an economist in telecoms, I’ve worked all over

the world and across many sectors, helping businesses

optimise their pricing. I believe it’s the most important driver of

long-term profitability and should be top of every board’s

agenda. My goal, with this editorship, is to raise the profile of

pricing as a strategic issue within Britain’s boardrooms. As

well as setting out some of my ideas in the articles below,

there are also responses from three of our sector experts and

one of our business intelligence experts. I hope you enjoy

reading about this fascinating and highly relevant topic.

THE PRICE

ISN’T RIGHT

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DEBATE: DO WE NEED AN INTERNET PRIVACY CHARTER?

Demand doesn’t always respond to price changes,

particularly if every company reduces prices or increases

promotions at the same time. I’ve seen companies cut prices

by 20% only to see volumes move minimally.

THE 10% PROFIT OPPORTUNITYTHE PRICE

ISN’T RIGHT

2 Vision Technology


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Following the financial crisis, automotive firms identified bank

finance and consumer credit as their biggest obstacles to

sales.

PRICING: THE AUTOMOTIVE

RESPONSEFUTURE OF

WORK

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In many companies, pricing decisions are often shared

between sales, operations and finance. This increases the

probability of getting it wrong.

THE ELEPHANT IN THE

BOARDROOMTHE PRICE

ISN’T RIGHT

4 Vision Technology


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With some notable exceptions, pricing policy in this sector is

too short-term. Change is needed, beginning with a clearer

understanding of what promotions actually cost.

PRICING: THE CONSUMER

GOODS REPONSETHE PRICE

ISN’T RIGHT

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As we slowly emerge from the downturn, many IM companies

are seeing a surge in demand and the challenge has flipped.

Now they have to get customers to accept that prices can go

up as well as down!

PRICING: THE INDUSTRIAL

MANUFACTURING RESPONSETHE PRICE

ISN’T RIGHT

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I believe analytics will become a competitive standard for all

businesses, online and offline.

ANALYTICS: IS THE FUTURE FOR

PRICINGTHE PRICE

ISN’T RIGHT

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Rarely do I see D&A observations transform an organisation’s

customer-facing process; never have I seen them drive

change to an organisation’s culture. Why? Because it’s scary.

DIGGING FOR INSIGHTS WITH

GEEKS AND PROPELLER-HEADSTHE PRICE

ISN’T RIGHT

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40% of companies in our survey said they had sacrificed

margin through lower prices to drive sales in the past 1-2

years. Read additional data and insights from KPMG’s 2013

pricing survey.

BY THE NUMBERS: PRICING IN

THE UKTHE PRICE

ISN’T RIGHT

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Customised offers, variable pricing and auction models will

allow retailers to win back some power from savvy

consumers.

PRICING: THE RETAIL RESPONSETHE PRICE

ISN’T RIGHT

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EXPLORE THE PRICE ISN’T RIGHT

THE PRICE

ISN’T RIGHT

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the price isn't right - pricing is the most important driver of long-term profitability and...

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