Pricing goods and services is the language of business. It is the way a company communicates to customers—and reveals to competitors—the value of its products. This primary role makes strong pricing capabilities exceptionally valuable—in all industries and around the world.
In our experience, companies that significantly upgrade their pricing capabilities, in many cases, boost annual revenues by 2 to 8 percent—and virtually all of that gain flows directly to the bottom line. At large companies, pricing enablement programs routinely increase profits by hundreds of millions of dollars. In many industries, particularly those with tight margins or slow growth, pricing is a critical generator of enhanced profitability or additional cash to invest in marketing and innovation. Superior capabilities provide a powerful competitive advantage that differentiates a company in the eyes of customers and investors.