It is common for companies to have a Corporate strategy, a Business strategy, a Product strategy, a Sales strategy, and a HR strategy. Manufacturing companies might also have a procurement strategy to reduce costs and leverage their buying power.
However, many companies are just now realizing the importance of having a Pricing strategy.
Studies have shown that an increase of 1% in price can increase profitability by 11%. A reduction in cost or an increase in volume does not have the same impact on profitability. As a result of this significant impact of price, it is imperative for every company to develop a Pricing strategy.
In order to achieve this, pricing leaders and analysts must understand business strategy, product strategy, and sales strategy. By doing so, they will be able to build the most effective Pricing Strategy that ensures maximum value capture.
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