SAP® Thought Leadership Paper
Unlock Hidden Profits Using Effective Pricing Strategies

Today, as companies begin to emerge from the global economic crisis, they must turn to the most effective yet overlooked driver of profits: the active management of pricing. Companies that transform pricing from a tactical process to a strategic one can reap tremendous financial benefits.
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Thought Leadership

In order to leverage price management and optimization to drive profits, companies should adhere to the following best practices:

  • Fine-tune prices for all products and services to meet the latest competitor challenges and market conditions

  • Analyze historical and live transaction-level data as well as data already residing in your enterprise solutions to gain insight into profits and improve margins

  • Develop and implement effective cost-to-serve strategies to pass charges on to customers based on their customer class and their profitability impact

  • Establish well-defined customer segments that take into account diverse attributes in order to set more granular, segment-specific pricing and guidance

  • Empower your sales force with rich, detailed customer information about profitability potential, product requirements, and purchase history, and enforce negotiation policies that include target prices, price floors, and sale approvals
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