Publish Date
Oct 03, 2024
B2B organizations often have an underdeveloped pricing function, resulting in margin loss (EBITDA) as well as undervaluation of the business. Yet, many business leaders think that pricing function is well established in their organizations and there may not be any further opportunity for improvement. So, why does this conundrum exist? Why do business leaders think they may not have a pricing opportunity, while in most cases, there potentially is one?
In our series, “Show Me the Money, But the Right Money Please!” A&M Private Equity Performance Improvement Managing Director, Cliff Hall, discussed the framework behind an effective commercial strategy that drives profitable sales, margin improvement and cash flow. Our experience suggests that the reason behind the above conundrum lies in the answer to the following question. “How do we know when the pricing lever is well explored or, what are the symptoms of an underdeveloped pricing function?”
Business leaders or/and financial owners of B2B businesses should ask themselves the key questions to explore margins improvements through pricing. Read the full article here to determine what questions you should be asking today.