Monday, 14 March 2016

When&where is a Center Driven Pricing Department a Viable solution?

I recently wrote an article about pricing organizational set up in which the Pricing department was organized following a “center-driven” structure.
Pricing know-how was centralized to increase knowledge about regions, their customers and competitors. The center responsibilities included pricing research, strategic pricing, pricing management and education and provided monthly and quarterly analysis and reports.
On the other hand, operational pricing was decentralized and pricing decisions delegated to regional sales teams. Sales people could take € pricing decisions within the pricing corridors. In case further discount was needed, commercial managers had to provide competitive info and a meaningful business motivation to support their requests.
Would this approach and set-up be a feasible solution for your organization? 
What do you see a pros and cons? 
Any alternatives to suggest?

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