3 Steps to Align Your Pricing Strategy with Your Growth Strategy

Align Your Pricing Strategy or a square peg won't fit

Is Your Pricing Strategy Aligned with Your Growth Strategy?
If your pricing strategy does not fit your sales strategy, sales capabilities, or marketplace it will be difficult to grow profitably.  High performing sales leaders know that you must align your pricing strategy with your growth strategy.  Smart pricing pays off because it supports both sellers’ incentives and improved performance.

A Case of Pricing Misalignment
What happens if your sales compensation predominately focuses on revenue generation?  Your sales force may be incentivized to close more deals but at lower margins.  With little payoff for sales reps to negotiate for value-based pricing, this pricing strategy may be at odds with your plans for better margins.

The reverse can also be true.  One recent sales team attending solution selling training complained that they had to jump through onerous internal legal and financial hoops to close deals even though they were trying to rapidly increase market share to protect an adjacent business line.  Misaligned pricing strategies can seriously undercut a company’s unique plans for success.

Unfortunately, Poor Pricing Practices Are Common
In a recent survey conducted by Bain, almost 85% of executives responded that their pricing decisions could improve.   But they were unsure what factors were most important in crafting a pricing strategy that would boost the performance of their sales force while improving profits.  Don’t let misaligned pricing strategies derail your growth plans.

What Can Make the Difference
In looking at companies that successfully accomplish both objectives, analysts found these companies had three practices in common.  First, they customized their pricing to individual customers.  Second, they made sure that the strategy behind pricing was in sync with sales compensation.  And third, they provided relevant and meaningful development programs for both pricing and sales teams.

3 Steps to Align Your Pricing Strategy with Your Growth Strategy

  1. Be Sure Your Sales Strategy Is Clear Enough
    Can you clearly describe your sales strategy? Can your employees?  Is it being implemented consistently across the company?  Before you worry about your pricing strategy, make sure that both your business and your sales strategies are clear enough, believable enough, and implementable enough to win.If you cannot describe your ideal target client, your value proposition, and the two or three big sales moves for the next twelve months, you have sales strategy work to do.
  2. Align Your Sales Culture with your Sales Strategy
    Once your sales strategy is clear enough, make sure that your sales culture – the way work gets done and the way people think – is 100% aligned with your sales strategy. Then tie those desired cultural behaviors to meaningful incentives and consequences.  You want people to move toward the desired behaviors and away from the misaligned behaviors.
  3. Align Your Pricing Strategy with Your Sales Strategy and Culture
    Once your sales strategy and culture are clear and in sync, it is time to customize pricing strategies, align sales compensation, and then lastly to train sales, marketing, finance, legal, customer service and anyone else involved in the sales process on how and why you price the way that you do.

The Bottom Line
Even though the highest performing sellers focus on value over price, you cannot let a misaligned pricing strategy or culture get in the way of sales success.  If you want to improve pricing decisions, align your pricing strategy with your sales strategy, culture, and compensation.  Then ensure high levels of transparency so that every can see the impact of each deal’s price.

To learn more about getting your sales team aligned, download How to Optimize Your Sales Force in the Face of Increased Performance Pressure

Share:
Facebook Twitter Google+ Email LinkedIn

Comments are closed.

We contacted LSA to help us with customized management development. LSA worked with me to identify a solution that would meet our exact needs. We decided to start at the top and ran the program for our executive team. It was such a great success that we hope to roll it out companywide. We look forward to a long-term partnership with LSA Global and their team of experts.

Barry L. Byrd, SPHR
Human Resources Manager

I had been working with LSA for many years with my prior company. Currently, I’m with a company who hadn’t done much basic management skills training. After identifying and presenting a program recently, our managers are excited and talking in the halls about the great experience. LSA saves us time in delivering the right training for our needs.

Phyllis Moracco
HR Director

The refreshing thing about LSA is that they focus on understanding our business situation and helping me succeed instead of selling a product. With over 150 experts, they are an invaluable resource that helps me deliver higher quality results faster. I recommend them to anyone looking to improve the performance of their workforce.

Stacie Rodgers
VP of Human Resources

Cutera

LSA has become the gold standard in team building and management training at Genomic Health! I have a hard time finding facilitators that come close to their level of customization, expertise and experience.

Emily Couey
Director of Human Resources

LSA provided top notch solutions right when and how we needed them. They exceeded my expectations from a speed, quality, and cost standpoint. I recommend them to anyone looking for a true business partner in the Learning and Development arena. The breadth and depth of their expertise has helped us hit tight deadlines across multiple projects.

Fortune 500 Financial Services Company
Director of Infrastructure & Technology

Congratulations on your pro-activity in establishing this program and developing such an effective New Employee Orientation course.

Farhat Ali
President and Chief Executive Office

Fujitsu

LSA’s approach and ability to bring the best resources to eBay has been a great asset. They really focus on helping us succeed in any way they can and are very flexible in meeting our management and talent needs.

Mike Normant
Learning & Development

ebay

LSA custom designed a Management Development program that is absolutely “on target” for our technical managers. Their facilitator has done a superb job delivering the material in a way that is fast paced, highly interactive, and fun. She presents practical solutions to the people situations that our managers face every day. I regard LSA as an excellent partner that understands our business needs and a virtual member of our HR department.

Judith Onton
Vice President Human Resources

Working with LSA Global has proven to be extremely valuable and worthwhile. LSA understands our business, has deep expertise in content areas, and tailors the programs to deliver great results. The facilitator was extremely knowledgeable about Working Globally with India and her energy and passion made the session interesting, fun, and enjoyable for all that attended. The participants walked away extremely pleased along with highly useful practices and tools. I would highly recommend LSA Global to any company that has partners or offices in India.

Glenn McGillivray
Human Resources Business Partner

Intuit

LSA helped us design and deliver a blended learning solution for our leaders to help drive our growth plans in a way that aligned with our specific culture and values. LSA understood our business, had deep expertise in the content areas, tailored the programs to fit our specific needs, and delivered great results. They constantly strive to deliver business impact and align their solutions with our business initiates, culture, and performance management systems. I highly recommend them to anyone looking to take their leaders to the next level.”

Beth A. Taylor
Vice President of Human Resources

Thoratec

Thank you to LSA Global for their partnership and support in helping us to design and roll-out our valuable management development training program. I personally have partnered with LSA Global at four of my previous companies. It continues to be a delight working with LSA. We look forward to partnering with them at Blackhawk Networks for future training and consulting needs.

Suzanne Kinner
VP Human Resources

Blackhawk Network

LSA has been a tremendous asset to my portfolio, both at my current company and my past company. As an HR leader, I am always looking for ways to find external resources that can provide a solution to our management training needs. LSA does that for me. Their solutions are presented in a much more leadership-oriented manner so as to be crisp, business relevant, and easy to apply right back on the job. I will continue to augment our programs using LSA solutions.

Ken Boehm
VP of Human Resources

We partnered with LSA to pilot a customized behavioral interviewing program to help ensure that we continue to hire the best and brightest as we continue to rapidly scale. LSA’s ability to understand our business and our unique culture combined with their desire to ensure that the best practices framework truly fits our performance environment and is highly adopted by our people is a real blessing. Most other firms want to just ‘give you training.’ Not LSA, they are focused on helping me hit our hiring forecasts and attract A players.

Jennifer Remling
Director of Global Recruiting

AKQA

What a personal and professional pleasure it has been to Partner with LSA. They are truly a strategic partner with Wyse. For more than 5 years, LSA has been engaged in delivering various training and development solutions for Wyse, from custom on-site programs targeting specific core competencies, to working individually with clients to build job skills, and offering invaluable services to me and my team as we continue to build our learning programs. LSA’s representatives do more than sell a product, they offer a full service solution: they understand our business, our strategic initiatives, and the needs of our customers.

Jeff Rangel
Director of HR

Our company engaged LSA to do a specialized “train the trainer” program, and the consultant’s performance outdid our exceptionally high standards for such a program. Very crucial to the success of this program was the work done upfront to discuss our needs and to interview key members of our organization so that the program specifically met our goals. Our facilitators continue to comment on the success of the program. Thanks also for the follow-up.

Frank Abbott
Chief Financial Officer

Evaluate your Performance

Toolkits

Toolkits

Download key published insights and tools from industry experts highlighting best practices in the areas of talent, strategy and culture.

More

Health Checks

Health Checks

Want to know how you stack up against leading organizations?  Receive a complimentary benchmarking analysis courtesy of an LSA Expert.

More

Whitepapers

Whitepapers

Get up to speed on timely solutions critical to your business. Published by LSA Experts based upon client feedback and key industry trends.

More

Methodology

Methodologies

First we identify the key metrics you want to improve. Then we assemble a dedicated team of elite experts who have successfully solved similar problems with similar clients.

More

Blogs

Stay up to do date with the latest information on how we help high growth companies align their culture and talent with strategy.

More

Case Studies

Client Case Studies

Real world consulting and training approaches from LSA projects, providing insights on how your company can outperform the competition.

More