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Imprint: Cambridge Strategy Publications

Paperback
List Price: £55.00
Format: Paperback
Extent: 98pp.
Size: A4
ISBN:  978-1-907766-00-8

The Pricing Strategy Audit​
Kent B. Monroe
University of Illinois

Tags: Systems Thinking, Pricing Strategy, Organisational Leadership

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Cambridge Strategy Audits


The Pricing Strategy Audit

An in-company assessment to help create the best possible pricing strategy for your organisation

This detailed self-assessment audit can be used:
  • to measure and improve the effectiveness of your present pricing strategy
  • or to create a sound pricing strategy where none exists.

First, use the audit to understand the 5 factors to consider when setting prices - and how to balance them. Then get clear answers to questions like these:
  • Does your pricing strategy support broader corporate objectives?
  • Have you fully understood the influence of price on your customers?
  • Do you use price correctly as an indicator of product/service quality?
  • Do you use reference prices and differential prices effectively?
  • How well do you use breakeven and profit analysis?
  • Do you use appropriate pricing strategies at different stages in the product/service life cycle?
  • How do you use promotions and discounting?
  • Have you considered the legal issues?

​The audit doubles as a complete introduction to the whole question of how to set prices and calculate the consequences of your pricing decisions.

The audit's 7 steps are:
Step 1: Assess the Consistency Between Corporate and Pricing Objectives
Step 2: Assess the Relevant Economics for the Pricing Strategy 
Step 3: Determine How Your Buyers Perceive Prices 
Step 4: Determine the Relevant Costs for the Pricing Strategy 
Step 5: Determine the Characteristics of each Specific Price Decision 
Step 6: Integrate Specific Price Decisions into an Overall Pricing Strategy
Step 7: Assess the Administrative Structure for Managing the Pricing Function.


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