Thursday, June 7, 2012

Matt Sileno Idea from the Vault: Tracking Pricing Effectiveness



Every company should have a set of pricing metrics that measure the financial and operational health of pricing across the business. These metrics may include simple data, such as the average selling price, discount, and margin for key products; operational data, including the number of pricing exceptions and win/loss percentages; and special measures to track the progress and impact of specific pricing initiatives. Best-practice companies use cascading dashboards. While the manager of a single product line may see metrics only for that, the general manager of a business unit sees those same metrics across the operation and can drill down to the level of individual products to understand the root causes of pricing performance.

Author(s): Walter L. Baker, Michael V. Marn, Craig C. Zawada

Source(s): Building a better pricing infrastructure (The McKinsey Quarterly)










via Alltop RSS http://www.mgmtideas.com/content/67/?utm_source=feedburner&%3Butm_medium=rss&%3Butm_campaign=2012-06-08&utm_medium=feed&utm_campaign=Feed%3A+ManagementIdeas+%28mgmtideas.com+-+Latest+Content%29 Matt Sileno

http://www.lead411.com/Matt_Sileno_3146962.html The Intuitive Group Inc

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