Remove Negotiation Remove Procurement Remove Profitability
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The Important Role of Pricing Departments in the Price, Cost, Revenue Equation

Holden Advisors

Think: Revenue – Costs = Profit. Works side-by-side with sales to sell value and overcome procurement. When only 30% of B2B buyers make decisions based exclusively on price (noted in Negotiating with Backbone ), it’s not surprising the other 70% care about value if they are thoughtfully informed about it. Think about it.

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Understand the Value You Offer to Your Customer

Holden Advisors

That means quantifying the incremental profit dollars that drop to your customer’s bottom line because they’ve chosen your product over the alternative's. The most fun part about it is that sellers can use that same value understanding to take back control of negotiations. Finally—and probably most importantly—attach a dollar sign.

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Why Pricing Is So Hard and Why Most Companies Mess It Up

Holden Advisors

Customers don't care about your cost, and they'll gladly tell you so in a negotiation. Just because we're told that we are a commodity (which is a procurement tactic), does not mean we are a commodity. I'm really good with that, as long as we balance it with profit. One of them we hear a lot is “price to cover cost.”

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Context and curiosity drive commerciality and pricing

Red Star Kim

The crux of marketing is to anticipate (and meet) client needs whilst maximising profit. Price is a major driver of profit. Procurement and pricing Increasingly for global or public sector clients, procurement will have a major role in managing panels, framework agreements and tenders. Books on pricing?

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An Introduction to Enterprise Sales for Key Account Managers

DemandFarm

A multinational software company might spend nearly a year negotiating a $5 million deal with a Fortune 500 company. This process involves multiple product demonstrations, engaging with IT, procurement, and finance stakeholders, and significant customization to meet the client’s needs.

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The Kraljic Matrix

Flevy

The procurement function in most organizations deserves more attention than it gets. Most executives associated with procurement lack the competencies and perspectives required to identify gaps and effectively manage the function. The aim of the Kraljic Matrix is to inform an organization’s Procurement Strategy.

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10 New Capture Strategy Tips to Keep Clients & Avoid Competitive Bids

Account Manager Tips

You'll need to understand the decision-making process, the competitive landscape, develop solutions, pricing, negotiation tactics and lots more. Before you talk to the client, know your anchor price, walk away price and have a negotiation strategy. Shareholders and board/directors value growth, costs, profit and cashflow.

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