Global Pricing Study 2016

Simon - Kucher & Partners

There has never been such immense pressure to change worldwide: Digital networking, shorter innovation cycles and global interdependencies force companies to continuously rethink their approach. And that’s not all – at the same time, companies find themselves right in the middle of increasingly intensive price wars. Only those who actively manage the situation, compensating increasing costs through successful price management and optimally monetizing innovations, can prevent declining margins and the associated cuts.

One of the strongest drivers of these widespread price wars is digitalization. Across all industries and sectors, no other mega trend exerts such high pressure on prices. Many companies are still struggling to face the challenges of the digital revolution – especially when it comes to pricing.

The consequence: Many lucrative opportunities are left untapped, whether in terms of successfully securing profit margins or establishing new business or revenue models in the market. That’s why now more than ever pricing as a topic needs to be recognized at the C-level! The companies that came out on top in the Global Pricing Study understand this. Instead of relying on a prayer session before a price increase, they make pricing a C-level topic. The outcomes are a more effective pricing orga-nization, innovative processes, the right tools, and most importantly, 27 percent higher profitability.

How decision-makers handle change and price pressure is shown in the extract of the study provided on the following pages.

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