Conventional wisdom would suggest that pricing, as a key component of a business’s financial performance, is a critically important discipline within any enterprise, touching many departments, from sales and marketing to finance. And yet, does anyone know whether their company is making the best pricing decisions? TEC Principal Analyst P.J. Jakovljevic is encouraged by the growing awareness and adoption of pricing technologies among B2B enterprises.
benefits of contribution margin
quantify these quick operational benefits and provide defendable and intuitive guidelines—including average price, break-even price, market price, WTP, revenue optimal price, margin optimal price, last price paid—leads to gaining an understanding of the vast data sources the company has available and the challenges it faces in implementing a broader and more strategic pricing optimization initiative. Such early successes might also assure user adoption across the organization. Other key strategies