COVID-19 shed a light on many shortcomings across companies’ operations and strategies; from a pricing perspective, firms are realizing that their static annual repricing practices are just not cutting it anymore. With unprecedented inflation and demand fluctuations due to COVID-19, companies need to constantly adapt and re-assess their pricing rules and standards. At the same time, many companies still use the basic cost-plus spreadsheet pricing approach without leveraging market insights. This approach limits profitability, creates volume risk, and is not ultimately sustainable. Navigating this rapidly evolving environment can be extremely challenging and requires a team of experienced individuals who can help guide companies through their pricing process re-designs.
Carlisle’s pricing strategy provides long-term solutions to managing product prices based on market dynamics and internal objectives. Carlisle supports clients in developing new business processes and organizational structures to leverage best-in-class pricing approaches.
Upcoming Strategic Pricing Sessions
Now is the time to re-vamp and re-imagine your business’ pricing strategy and operations. To learn about what your organization can do, check out Adam Brody, the Director of Carlisle’s pricing portfolio, in his two upcoming sessions at pricing conferences. See below for more information:
Technology’s Use in Managing Pricing in A Complex Multi-Channel Sales Environment
Adam Brody, alongside Neury Freitas, a Principal at Roland Berger, are presenting on Tuesday, October 12th at the Automotive Aftermarket Supplier Association (AASA) Technology Conference. There, both Adam and Neury will share their perspectives on channel strategy and broad pricing trends specifically for T1 aftermarket suppliers. These topics are particularly of interest as suppliers continue to support increasingly complex aftermarket channels, including digital /e-commerce outlets. These complex channels require new pricing strategies to meet customer needs, address multichannel issues, and strengthen margins. These challenges require unique technologies that provide specific pricing tools to manage the entire profit waterfall through the use of internal data, competitive intelligence, strategic rules and pricing logic.
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Grey Market Mitigation through Optimized Pricing
Then on Wednesday, October 13th, Adam Brody is presenting at the Professional Pricing Society Conference. There, Adam will share his perspectives on how to mitigate grey market arbitrage flow. This interactive workshop will explore a broad range of challenges that OEM aftersales departments deal with surrounding gray market arbitrage regionally and by channel.
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Carlisle’s Pricing Practice
Carlisle’s team of pricing experts create strategies that cover all aspects of the price waterfall, from setting list and net prices, to monitoring off-invoice cost variance. Not convinced? Check out what Jeff Soyster and Joe Thibodeau have to say about the criticality in effective pricing strategies:
Understanding consumer willingness-to-pay (WTP) by product and customer segment is essential to effective retail pricing. Robust historical data from point-of-sale systems allows us to calculate elasticity from transactional datasets, but this history can be difficult for retailers to obtain and preserve at the necessary level of detail. Alternative methods of quantifying consumer WTP, such as conjoint analysis, are a powerful way for retailers to contextualize their pricing decisions against the potential impact to consumer volume.
Jeff Soyster, Manager and Retail Pricing Expert
Competitive analysis is the single most important aspect of the pricing work that we do. It touches virtually every aspect of a company’s pricing strategy, from defining part competitiveness and segmentation design, to the pricing methods, to lifecycle design and implications – competitive analysis is a critical component of the pricing process. Maintaining a robust, repeatable process for collecting competitive data for all applicable regions needs to be a key focus for companies looking to sophisticate and optimize their pricing processes.
Joe Thibodeau, Manager and Competitive Pricing Expert
Carlisle’s Pricing Experts