In many Companies, the importance of the Pricing function is often underestimated and reduced to a simple Cost + approach.
However, Pricing is one of the main levers of Companies' profitability and should be enhanced in many enterprises.
To be efficient, the Pricing function has to rely on many companies ressources (Sales, Marketing and Finance).
Another error when it comes to Pricing is to overevaluate the importance of Price elasticity. This error leads Companies to often cut prices in search of volume increase to compensate the profitability loss.
In addition, average costs are often taken into account in pricing offers where prices shall be adapted to the cost structure (fixed, variable costs).
Econe Square helps Companies in optimizing their price catalogue and developing an efficient pricing function.