IMPORTED FROM SKOOL
Original Post was posted by Karl Aschwanden on Aug '24
Hey Ulrik
I really liked your session today and how you get all your stakeholders to agree on pricing within a single workshop. My biggest question is how to ensure ongoing collaboration later. In my experience it’s very difficult to keep stakeholders aligned on pricing objectives, given their different interests.
Have you come across any solution that is less formal than a regular pricing alignment meeting? From which point on would you recommend dedicated pricing/revenue growth professionals?
Ulrik Lehrskov-Schmidt • Aug '24
Hi Karl
0-$5M ARR: CEO/founders have to run this directly.
$5-15M: CPO and CSO have to align on this, refereed by the CEO (who still ultimately owns this)
$15-100M (ish): Same as earlier, but now with a more formalised structure in a Pricing Committee with a named person in charge doing the work (e.g. running the annual wheel, collecting data, executing experiments, stakeholder mgmt). At this point it can start as split ressource ($15M) but will have to be a full time ressource at some point ($50M … See more
Ron Kugler • Aug '24
In a company of $100m+, a pricing committee is key. As part od a RAPID, e.g., it’s still useful to have a single decider, e.g. the CEO, COO, or GM - basically whoever owns the P&L. Then the pricing committee, supported by what
@Ulrik Lehrskov-Schmidt
calls Comm-Ex being the A in the RAPID gives the ultimate decision-maker the comfort of having made the best decision. It also means that top-down stakeholders can’t then come along and change their mind after the decision has been made - which is useful!
Ron Kugler • Aug '24
@Jerker Johansson
Would these be a subset to the core Pricing Committee (PC), having been consulted and that information consolidated by whoever facilitates the PC meeting? Or part of the core PC, including being on the regularly scheduled PC meeting where decisions get made?
Ron Kugler • Aug '24
It seems what you are describing effectively several layers of agreement. So:
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to reach a concensus at the lower layer (sales pros, product, engineering, marketing etc. Ah, don’t forget Finance!),
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resulting in a series of choices (of which just one is the clear winner because you will have all the data already to support that choice after having done all that pre-work) that are available to the top layer (what I would call the core PC, usually C-Level) to make a decision.
The first step is the hard… See more
Ulrik Lehrskov-Schmidt • Aug '24
Ron : just get the right stakeholders in the committee level, and have them refereed by the CEO.
The main jobs of the pricing committee are:
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to make decisions that are good for the business (global level) and not for any individual silo (local level).
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for each member to go back and champion the execution at the local level.
Also: don’t confuse the Pricing Function (pricing professional who does the work, runs numbers, and program manages the changes) with the Pricing Committee (group of execs … See more
Jerker Johansson • Aug '24
@Ulrik Lehrskov-Schmidt
not a cop out, I think. I think that activating top level management in Pricing is essential. Being enthusiastic is not enough.
Two small formal activities for top Management in the above case:
- Appoint members to the Committee
- Decide/signoff of the proposals (at least annually, not talking dynamic pricing, but the decision to work with dynamic pricing would be such a top management decision), but taking visible and formal accountability of Pricing
Again, what you share here , and makes many more share is really excellent, thanks a lot!
Ron Kugler • Sep '24
@Ulrik Lehrskov-Schmidt
Agree 100%, Pricing function coordinates/facilitates, incuding understanding how decisions made by the PC and, ultimately P&L owners (who execute/champion on the decision) can be executed. It’s those local champions that will have to translate a top-down view into actual results.
Also agree that an elegant solution is somewhat elusive. This discussion proves that.
Please share the link to the webinar on “session today and how you get all your stakeholders to agree on pricing within a single workshop”
I am having an issue aligning stakeholders and I am of need of a technique to get alignment and keep to the agreed to price and package.
Hey @Chris_Aliani - let me ping Ulrik to grab this for you!
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