Game Changer

Book excerpt: More and more leaders in the last few years have challenged their own pricing models, invested in price optimization, and confronted disruptive event after disruptive event, from the pandemic to inflation to supply chain constraints. But without an overarching pricing strategy – and the structured framework to derive and support it – these leaders have often overlooked opportunities to shape their markets to their advantage. The book is aimed at senior executives and business leaders who understand that pricing is a powerful lever, yet feel it is hard to act on. It offers the pricing strategies and tactics most leaders lack, with a logical, practical framework called The Pricing Triangle that will enable them to provide strategic pricing guidance to their functional teams with greater confidence, speed, and efficiency. The Triangle draws its shape from the need for companies to coordinate pricing decisions across three sets of three drivers: • Inputs: Costs, competitors prices, and most importantly, the value the company creates for customers • Customer Behavior: Elasticity, price discrimination, and game theory • Market forces: Commoditization, innovation, and market consolidation. The Strategic Pricing Triangle elevates the development of pricing strategy to the same level as other key strategies within the company.