The Professional Pricing Society's Spring Conference in Dallas was a deep dive into the world of pricing. The conference brought together over 400 pricing leaders from various industries, offering a wealth of insights into the current trends and challenges in the pricing world.
Here are our four key takeaways from a busy week.
1. The persistent gap between pricing and sales
Sales and pricing teams continue to operate in silos. The traditional view of pricing teams as mere "data point providers" and “deal-gatekeepers” is outdated, but its effects are lingering. Today, a stronger, more dynamic partnership is needed.
In an era where data is abundant and pricing is becoming more complex, simplicity could be the answer. Pricers should actively look to collaborate with different functions, especially sales, to understand their perspective. This approach can build credibility and foster a stronger partnership.
Being part of sales meetings, understanding sales needs, and helping them achieve their goals can earn pricing teams an advocate in sales. Pricing teams can step into the shoes of their sales counterparts and bridge this gap. Accompanying price changes with detailed cross-functional communication and change management plans is a key to success.
2. Pricing teams face resource challenges
Pricing teams are stretched thin, struggling with tasks like market research and competitive intelligence. One potential solution to this issue is to continue to push for more formalized pricing training at universities – both at the undergraduate and graduate level. This will help to build a talent pipeline for the future.
On-the-job training, workshops, and continuous learning programs can help individuals stay abreast of new pricing strategies and best practices. This not only enhances their abilities to handle complex pricing challenges, but also helps in maintaining a competitive edge in the market. Investing in people and their skills is an investment in the future of the company, ensuring it's well-equipped to handle ongoing market challenges.
3. Pricing teams are still navigating the inflationary environment
Pricing teams face the challenge of staying ahead of inflation. With prices on the rise, it's hard to measure real pricing "wins." Blanket price increases across the board aren't the answer. Instead, pricers should focus on building skills to manage ongoing inflation. Resources like Pricing with Confidence can be a valuable tool in this effort.
Moreover, pricers need to develop strategies that consider the diverse needs of their customer base. By segmenting customers and tailoring pricing approaches accordingly, pricing teams can create value for both their organization and customers, even in times of inflation.
The importance of investing in people and their skills cannot be overstated, especially in these turbulent economic times. As we witness what will likely be a sustained period of moderate inflation, the skillset needed in pricing teams will also evolve. Companies need to focus on nurturing the right talent and equipping their teams with the necessary tools to navigate this challenging environment.
4. The pricing community is strong and growing
The conference highlighted the strength and growth of the pricing community, signaling a commitment to learning and networking. The fact that attendance has increased at the conference year over year, despite being viewed by some companies as an avoidable expense, reflects the dedication of pricing professionals.
As we look ahead, the pricing community must continue to collaborate, share insights, and learn from one another. This camaraderie will help pricers navigate the ever-evolving challenges they face and build a robust network of professionals committed to driving success in the field of pricing.
PPS Dallas 2023 proved to be a valuable platform for knowledge exchange and collective growth. As we continue our journey in the world of pricing and sales, the lessons shared and learned at the conference will remain invaluable. The PPS community stands as a beacon of support, and the Holden Advisors team is proud to be a part of it.
