Effective price management for profit.

1. Pricing For Profit Rags Srinivasan Iterative Path

2. Three Components Of Effective Price Management 2. Incremental Analysis 1. Value-add to Segments Profit 3. Customer Margin Effective price management is about pricing for profit not market share Rags Srinivasan © 2009

4. Segmentation and Versioning – Value to different customers is different

5. Reference Price – Price customers are willing to pay is influenced by their reference price

6. Price Realization – Reduce price leakages and increase pocket priceProfit Rags Srinivasan © 2009

8. Relevant Costs –Before you make a new investment understand the incremental profit just from that – not the aggregate. Profit Rags Srinivasan © 2009

10. Maximize total Profit per customer – Can you include complements that help maximize total profit per customer?Profit Rags Srinivasan © 2009