Five Questions to Drive 5% Margin Improvement Through Pricing

Clifford Hall, Managing Director Bala Ekambaram, Managing Director Prasad Aduri, Senior Director

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.

READ THE FULL ARTICLE HERE

https://www.alvarezandmarsal.com/insights/five-questions-to-drive-5-percent-margin-improvement-through-pricing

Authors

Clifford Hall

Managing Director

Clifford Hall is a Managing Director with Alvarez & Marsal Private Equity Performance Improvement Group in New York. With more than 25 years of experience in management, board advisory, operational, and functional roles in the Americas, Europe and Asia, he leads the U.S. Commercial Excellence service line.

Bala Ekambaram

Managing Director

Bala Ekambaram is a Managing Director with Alvarez & Marsal Private Equity Performance Improvement Group in Dallas. With more than 25 years of experience in consulting, commercial, operations and general management roles in North America, Europe, and Asia, he is a key leader in the U.S. Commercial Excellence service line.

Prasad Aduri

Senior Director

Prasad Aduri is a Senior Director with Alvarez & Marsal Private Equity Performance Improvement in Chicago. He specializes in leading commercial excellence, business and technology transformation programs for private equity and corporate clients. Mr. Aduri has worked with clients across a range of industries, including industrial, technology, business services, healthcare, energy and financial services.