The link between pricing and profitability, need for targeted customer data hot topics among CFOs
HOUSTON, Feb. 11, 2011 – PROS, the world leader in enterprise business-to-business pricing and margin optimization software, today announced it co-hosted three pricing roundtables with Transcend Consulting at CFO Magazine’s 2011 Corporate Performance Management Conference held on January 30 through February 1, 2011, in New York City. The roundtables garnered significant interest from CFOs looking for innovative ways to drive profitability.
“Our roundtable discussions validated that CFOs, as the guardians of profitability, have a crucial responsibility to ensure their companies implement best-in-class pricing practices and technologies to protect margins and maintain a competitive edge,” said Tim Girgenti, chief marketing officer, PROS Pricing.
Attendees of the roundtable discussions engaged in lively conversations around how to improve revenue and profitability, defend and grow market share, and improve business agility through the power of pricing. While the majority of CFOs agreed they view themselves as guardians of their company’s profitability, only a third said they have responsibility for pricing directly within their organization. Most agreed this disconnect can be minimized through strategic alignment of objectives around profitability, across all functions. CFOs also discussed the need for better, more actionable data to help make better pricing decisions and improve overall pricing confidence. One example discussed was information that reveals each customer’s unique willingness-to-pay, a key piece of information that can lend greater confidence to a sales force while also protecting margins and market share. CFOs agreed that better technology and better processes are needed to achieve company-wide alignment on pricing and profitability.
More and more, pricing is being viewed as a critical component of business strategy. This fact is underscored by the results of a recent survey of CFOs by CFO.com magazine, which found that pricing-related issues are top-of-mind for these senior executives. Uncertainty around ability to maintain margins was rated the number one concern among CFOs when thinking about their own companies. When assessing the macro-economy, CFOs cited pricing pressure from competitors as their number three concern.
“CFOs understand the link between pricing and profitability and realize that the same degree of sophistication and investment they made in procurement is also needed in pricing to ensure the profits they gained in the supply chain don’t leak out on the sales side,” stated David Hochhauser, partner, Transcend Consulting.
About Transcend Consulting
Transcend Consulting LLC is a leading provider of pricing and value management services. Transcend Consulting combines leading edge analytics, deep industry expertise, and practical experience, to deliver pragmatic solutions which help companies achieve repeatable, sustainable financial benefits.
Founded in 2008, Transcend Consulting has helped clients improve their profitability in a variety of building materials, building automation, industrial, and hi-tech manufacturing and distribution industries. Transcend Consulting operates throughout North America, with headquarters in Princeton, NJ. To learn more about Transcend Consulting, please visit us at http://www.transcend-us.com.