Tag Archives: target price

10 bad pricing practices that cost millions dollars every year to societies

1. Sales people cannot easily find the target and walkaway prices for each deal
2. Price is aligned with (or below) competition without consideration of customer value perception and service differentiation
3. Quotes are based on the ‘‘average shipment’’ without consideration of true shipment profile, causing up to 5% errors in profitability simulation
4. No systematic workflow to enforce pricing pollcy and review/approve quotes with pricing exceptions or non standard costs
5. Negotiated tariff is not correctly implemented in the billing system which results in customer claims, extra work for billing staff and money left on the table
Continue reading