Six Sigma Pricing | SPA
Leverage Six Sigma Methodology to Drive Continuous Margin Improvements
A disciplined process is needed to create Pricing Excellence - SPA’s Six Sigma training drives real results focused on profitable growth.
“Measure of success at strategic pricing is not how much it increases price but how much it increases profitability.”
Thomas Nagle - Professor, University of Chicago
Current State of Pricing
- Limited negotiation skills
- Cost + pricing
- No analytical tools
- No profitability improvement plans
- Sales rep discount vs. sell
- Reactionary pricing tactics
- Inconsistent pricing structures
- No growth in GM%
- Ignores market reality
- No strategy to improve margins
Six Sigma Pricing
- Negotiating strategy and tactics
- Value-based pricing
- Automated decision making tools
- Customer Profitability improvement plans
- Sales team selling value
- Pricing strategy and leadership
- Consistent and fair pricing architecture
- 2 to 4% growth in GM%
- Pricing based customer sensitivity
- Continuous improvement focus
So clearly the latter is the better way to go - but… How do we get there from here? What are the steps and areas of focus that will get us there successfully?
…
Graduates from this course will learn to chart a clear path to pricing improvement. They will learn each of the following steps:
- How to design and design goals which are consistent with their company’s pricing strategy.
- How to measure and identify characteristics critical for pricing success.
- How to analyze the current situation and steps along the way.
- How to design an improved alternative which moves closer to the desired result.
- How to verify that actions taken create the right results.
Read complete article here:
Strategic Pricing Associates, Inc. - Six Sigma Pricing.
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