Pricing is a potent lever for increasing profits and responding to change. BCG helps companies achieve quick wins while building a foundation for long-term success.
Pricing is the unsung hero of growth and resilience. It gets little buzz. Yet, companies that get pricing right extract the full value of their goods and services, respond faster to volatility, and deliver more revenue to the bottom line than those that don’t.
We guide companies on the journey from static to dynamic B2B pricing. But even more important, we enable them to steer their own course for the long term, so they can generate value quickly—time and again.
With the right B2B pricing strategies, companies align prices more closely with willingness to pay, generating value that otherwise would go untapped. And they adjust pricing—continually—in response to changes in markets and customer needs. We help companies deliver quick wins that fund the journey while building the capabilities that let them do even more—and keep on doing it.
Our B2B pricing work is built upon three pillars.
Pricing strategy needs to be clearly defined, aligned with overall business strategy, and communicated throughout the organization. We help clients define and shift their pricing models as well as identify how to leverage packaging and value-added services to extract maximum value from their offerings.
We help our clients extract the most value from their products and services. Our offering encompasses dynamic pricing for automated and data-driven personalized price changes; value-based pricing, to align price to the perceived value of a product or service; and discount excellence, to define target discounts and manage discount levers.
We want clients to own their B2B pricing and deliver long-lasting impact. So, a key part of our work is to define roles, governance, and organization—and make it all stick through robust change management. It’s not enough to simply set a price. You need confidence in your pricing and a test-and-learn culture where you move quickly from idea to pilot to scale.
Our B2B pricing consultants draw upon BCG’s global network of thought leaders—experts across industries and functions—to create the pricing strategy and the operating model that best fit a client’s needs. We also leverage some unique resources:
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Simplified, Future-Proof Pricing for a SaaS Platform. Our client, a leading provider of software as a service for enterprises, wanted to better monetize its solutions, manage discounting in a more rigorous way, and streamline its pricing processes. We reduced the number of pricing meters by 70% and replaced an outdated user-based pricing model with a two-tier transaction-based strategy that differentiated high-value offerings from high-volume offerings. We developed “better together” suites to accelerate enterprise adoption—and cross-selling. We brought advanced analytics into the discounted logic and integrated discount guidance into the client’s CPQ—configure, price, quote—system through our Pricing Catalyst solution.
The result: a 10% increase in annual contract value, and a 20% improvement in deal velocity.