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SIX SIGMA PRICING PROCESS

Basic human processes are 4 Sigma at best … 99% good is just not good enough.
Greg Preuer – VP Strategic Accounts & Initiatives at SPA, Six Sigma Master Black Belt


A disciplined process is needed to achieve Pricing Excellence – SPASigma’s Six Sigma Pricing training drives real results focused on achieving profitable growth.

Measure of success at strategic pricing is not how much it increases price but how much it increases profitability.
Thomas Nagle – Professor, University of Chicago

CURRENT STATE OF PRICING
Limited negotiation skills
Cost + pricing
No analytical tools
No profitability improvement plans
Sales rep discount vs. sell
Reactionary pricing tactics
Inconsistent pricing structures
No growth in GM%
Ignores market reality
No strategy to improve margins
SIX SIGMA PRICING
Negotiating strategy and tactics
Value-based pricing
Automated decision making tools
Customer Profitability improvement plans
Sales team selling value
Pricing strategy and leadership
Consistent and fair pricing architecture
Pricing based customer sensitivity
2 to 4% growth in GM%
Continuous improvement focus

So clearly the latter is the better way to go – but… How do we get there from here?
What are the steps and areas of focus that will get us there successfully?

The following are the five focus areas of our Six Sigma Pricing Mastery Course.

  1. Define: set roles, responsibilities, and goals for the team in alignment within the business
  2. Measure: build correct measurements and incentives for each person
  3. Analyze: use reporting tools to find opportunities to grow or challenges to fix
  4. Improve: build processes, systems and tools to assist teams and create reporting tools to track improvements
  5. Control: set and enforce pricing authority levels and repeat previous steps as continuous improvement never stops

Six Sigma Master Blackbelt, Greg Preuer, of SPA has created a unique course designed to apply time tested Six Sigma methodology to pricing.  Those who complete the course will learn not only how to systematically drive their company’s pricing processes towards excellence but how to sustain the gains and automate the process.  They will also become Six Sigma experts (Blackbelt) in business process with a focus placed squarely on price management best-practices.

Graduates from this course will learn to chart a clear path to Pricing Excellence.  They will learn each of the following steps:

How to design and design goals which are consistent with their company’s pricing strategy.
How to measure and identify characteristics critical for pricing success.
How to analyze the current situation and steps along the way.
How to design an improved alternative which moves closer to the desired result.
How to verify that actions taken create the right results.

Realize the benefits of SixSigma Pricing Process by enrolling into our online course. Please contact SPASIGMA today at customerservice@spasigma.com or 844-772-7446 to set up an onsite training session for your pricing team.