The current fast-changing business conditions in Greece, including a downward pressure on prices, have been endangering EBIT levels for some time. For many companies, straightforward cost-saving programs are reaching their limits in terms of extra potential.
Companies realise that small shifts in price levels can have a big impact on the bottom line. However, without accurate understanding of the market forces and profitability impact, especially in the dynamic environment of the Greek economy, it becomes tricky to change those prices within a strategic framework.
Strategic Pricing requires making a trade-off between price, volume and profitability. It is achieved by gaining a deep understanding of the customer segments, value drivers and costs, with the aim of delivering what customers want, at a price they are willing to pay.
However, realising the benefits from changes in pricing in due time requires alignment across functions, the right organisational structure and incentives, as well as the tools, technology and processes to support pricing objectives and monitor performance.
At PwC, we offer a distinctive approach to managing the everlasting challenge of unlocking, through a sound pricing strategy, including: