Pricing Tools

Price-SettingPrice Setting Tool

The Price Setting Tool uses a practical and well-tested process to evaluate customer value data, cost data, the market structure, price-volume tradeoffs and strategic objectives to arrive at a profit-maximizing price.  The tool strikes a sensible balance between analytic rigor and practical judgment to make it an essential part of the pricing process.  There are two versions of the tool depending on whether the customer value data comes from the economic or perceived value tools.

Breakeven-Calculator-(1)Pricing Break-even Calculator

The Break Even Calculator is an easy-to-use tool for understanding the profit implications of potential price increases or decreases.  It forces managers to focus on realistic expectations for how volume might change after making a price move

DiscountingDiscounting Tool

The Discounting Tool provides a framework for creating discount objectives and programs that maximize profitability.  The tool addresses a wide range of discount programs including: volume discounts, rebates, time-limited discounts, online ordering, do-it-yourself discounts and segment penetration.

Price-Metric-ToolPrice Metrics Tool

The Price Metrics Tool provides a structured approach to identifying price metrics that align prices with the value received by customers.  The tool is used to design new pricing models that can increase revenues and margins

Competitive-PricingCompetitive Pricing Tool

The Competitive Pricing tool provides guidance for how to manage competitive pricing moves by understanding the long-term profit implications of attacking and responding to competitors.  The framework defines three organizational pricing “personas” (leader, defender and aggressor) and shows how to develop competitive pricing moves for each