B2B Price Management & Execution: The Experience At A Large, Diversified Global Manufacturer
Pricing at global manufacturing companies involves multiple businesses, regions, channels and functions, including sales, pricing, finance, operations, marketing and executive management. List prices are only the starting point in the pricing execution process. The ongoing marketing and sales activities of the organization often revolve around discounts, promotions, channel discounts, rebates and other ways of motivating stocking and purchase. These discounts account for pricing waterfall or leakage. Pricing often varies in a B2B scenario, depending upon the time of the deal, the negotiating power of customers, internal political clout of field sales staff and management intervention.