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What to do To overcome the problems associated with Price Waterfall, marketing- oriented?

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Question added by Islam Elrobe , Sales senior manager , blu
Date Posted: 2014/03/10
Deleted user
by Deleted user

Not really market-oriented, but it is market-driven. The management can get good results for effective pricing execution (that has to come with market knowledege - comparative analysis of your competition ofcourse). Now, there are different ways that you can trigger it useful as most companies have used it for; raising product (or service) perception value, optimising product mix, introducing different price corridors, and minimizing margin leakages through discounting. This tool usually helps in identifying margin leakages and visualizes the price from the reference list(price) to the pocket price margin (includes: rebates, discounts). It actually makes it easier to visually compare to your competitors on basis of cost effectiveness.

Haranath Krishnardhula
by Haranath Krishnardhula , Acquisition Lead , HMITS

Price waterfall, is very typical tool where management get to know only the statistical information about product performance in terms of variance in purchase price with dollor fluctuation and selling price with quantity sell out. But it cannot record any data related to product how it performs in market in sight of competition. So it will lead to judging the model is profitable or loss in terms of bottom line.

But it cannot comprehend any internal and external factors which lead to this situation. If one particular product which is performing well in last before quarter and now in this quater if it is yielding loss and stocks got piled up. It cannot be comprehended by this tool. 

 

But i have seen this in few compaies where they were so deeply immersed in Price waterfall and get away from the actual facts which yields to the present results.

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