Priced to Win: Build an Optimized Pricing Strategy
IT service providers must optimize their pricing strategy to maximize profit margins and add value to customers.
Member Challenge
- Lack of competitive intelligence and market insights to support decision making around pricing
- Lack of dedicated staff with pricing skills and management processes
- Misalignment between the cost of offerings and the value they provide
- Lack of knowledge about how pricing works
- Lack of understanding of internal and external factors that impact a pricing strategy
Our Advice
Critical Insight
- Cost-based pricing strategies dominate the price of products and services among ITSPs
- ITSPs must broaden their input horizon to optimize a pricing strategy
- Packaging and bundling offerings improves value delivery and profit margin
Impact and Result
- Optimize profitability, business growth, and customer satisfaction
- Align with strategic priorities, market share growth, and expanded margin
- Determine the right price for offerings based on the customer and market
- React to supply chain issues or changes in consumer demand
- Stay competitive among peers in the market
- Maintain and improve profit margin, a 1% improvement in pricing can increase 11.1%
Research & Tools
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1. Priced to Win: Build an Optimized Pricing Strategy Deck – This storyboard will help you to increase your profit margin and align your engagement types with the right pricing strategies while adding more value to the offerings.
How you price your products and services will help determine the success of your organization. The right pricing strategy can do wonders for IT Service Providers (ITSPs) by increasing profit margins.
The key to creating effective and successful pricing around your offerings to drive maximum profit is to have the dedicated resources and skills to build an optimized pricing strategy. This storyboard will assist you in developing your repeatable pricing strategy based on various external and internal factors that influence the strategy at the different stages.
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Priced to Win: Build an Optimized Pricing Strategy – Storyboard
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