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"VETOB-based Pricing for Growth" Family of Services

Our "Pricing for Growth" family of service offerings helps growth-oriented businesses, and private-equity investors, manage key pricing issues at critical stages in their organization's growth trajectory. Our industry-leading, proprietary Value Exchange Trade-Off Boundary (VETOB) framework serves as the backbone for structuring these engagements. Our project experience covers the following:

  • Assess the VETOB model's likely operation for the new offering. 

  • Review and document applicable business strategies, as well as existing pricing capabilities (IT and human resources involved in price management, data assets, analytics tools). 

  • Collect available pricing data (possibly including market research), product/service cost information, competitive market intelligence, which may help quantify (dollarize) the value of differentiated features/ services, and assess willingness-to-pay levels of targeted market segments.

  • Define/formalize applicable pricing strategies and methodologies, which support business objectives and can realistically be operationalized using available resources.

  • Perform analytics to generate price files for upload into ERP systems. Assist in training if necessary.
  • Review and document internal and external factors impacting the VETOB model's operation in the context of the target entity. 

  • Define data room requirements for pricing. Conduct interviews with stakeholders. 

  • Review available information on the pricing capabilities (price setting analytics, execution tools including IT and human resources) and price structures of the entities involved. Assess target's organizational culture from a pricing/value capture perspective.

  • Identify and document relative areas of strengths and weaknesses. 

  • Identify potential threats, exposures, and possible opportunities, both in the short and medium terms. 

  • Review/refine any existing short term and long term post-deal integration plans and strategies (avoid customer churn, avoid unnecessary margin degradation, capitalize on pricing opportunities, etc.). 

  • Create detailed project plans for execution, including resource requirements, timelines, individual roles, and milestones. Assess potential task interdependencies and cultural issues.

  • Perform necessary analytics to enable execution, and advise on related tasks, including potential updates to pricing logic, pricing files, etc.

  • Direct implementation (lead training sessions, coordinate system updates, draft proposed internal and external communications, etc.).
  • Review existing KPIs, available systems, and existing/attainable data on key VETOB model factors. Consider current price management practices and reporting/analytics practices.

  • Review applicable best practice pricing analytics dashboard/tools.  Examples may include enabling measurement of margin impact of changes in price/cost/volume/mix, “stick rates” and/or "price realization rates" associated with pricing actions, and dashboards enabling “price banding” analyses to identify segment-specific price outliers.

  • Develop recommendations for KPIs, dashboards and other reporting/analytics tools. Define software technology approach (Excel/Access, Business Intelligence, or other data visualization software).  

  • Lead efforts to implement and operationalize the analytics solution.

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The Innovative Pricing Group, LLC.
Tel.: 513.377.4692
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