Pricing strategy and execution: an overlooked way to increase revenues and profits

Abstract

Purpose This article advocates putting pricing strategy on the CEO's agenda and considers the new concept of pricing execution – the development of pricing strategy and the implementation of the strategy through a combination of leadership, management practice, and software – from the point of view of the senior management team. Design/methodology/approach New software tools give companies a new way of setting, optimizing, and enforcing pricing changes within the organization. Findings There has been an explosion of applications in the pricing management space. Pricing execution offers both growing and mature companies a lower‐risk approach to revenue, margin, profit, and shareholder‐value growth than innovation and acquisitions. Research limitations/implications A proprietary 2005 Deloitte study of the available applications concludes that no one vendor offers a complete integrated solution. Practical implications Using software to improve pricing measurement, combined with better pricing execution, can help many organizations generate revenue rapidly. Originality/value CEOs and other leaders can use the article to educate the senior management team on the opportunity that pricing management represents.

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