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.
Getting B2B pricing right means mastering an array of technical and human capabilities, because pricing isn’t only about data and algorithms. It’s also about embedding an agile, collaborative, test-and-learn culture.
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.
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:
BCG on Marketing, Sales, and Pricing
Customer expectations are rising—are you ready to meet them? Explore our latest insights and thought leadership.
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 We reduced the number of pricing meters by 70% and replaced an outdated user-based pricing model with a two-tier transaction-based strategy that differentiated high-value offerings from high-volume offerings.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.
When B2B companies let technology drive their pricing governance models, they can lose sight of their strategic objectives. Smart pricing authority keeps them on course.
Companies that see through these misconceptions can set course on the journey toward making the right decision on price at the right time for each customer.
Quick and sustainable revenue growth can be a major value driver in transformations. Here's the why, the what, and the how of creating both immediate and lasting revenue impact in a transformation.
In tech, cloud-like pricing is so entrenched, it’s a purchase criterion unto itself. Other industries can learn from tech’s pricing transformation.
Coronavirus has thrown markets and business into chaos. Read our five powerful strategies to manage your pricing through the crisis.
Read our thought leadership on pricing and revenue management
