Audit of pricing processes

Audit of pricing processes

The efficiency of pricing processes is one of the basic factors influencing the company’s profit. The course of these processes is strongly influenced by the interactions of key departments in the company, i.e. Management, Sales, Finance, Marketing, Production Departments having different KPIs. This may result in internal conflicts of interest within the organisation and a lack of direct responsibility for the effectiveness of pricing decisions.

 The most common pricing processes:

  1. Processes of setting price list and catalog prices
  2. Processes of determining trade discounts and bonuses
  3. Processes of establishing commercial promotions, sales
  4. Processes determining price increases and decreases

The audit of pricing processes takes 5-6 weeks. During this period, we meet f2f with the Management Board and leaders of key teams in the company, i.e. sales, marketing, shopping, trade marketing, controlling, finance. In the next stage, we conduct a survey among the participants of the processes in order to map the procedures, roles, authorisations and responsibilities in terms of price decisions. On the basis of the materials collected we create a map of processes in the Business Process Model and Notation (BPMN) standard and assess their effectiveness.

 The result of the audit is a report containing:

  1. Development of a detailed map of the existing processes of setting prices, discounts, bonuses
  2. Identification of margin leaks
  3. Evaluation of the efficiency of the processes in terms of the achievement of the objective and the resources involved
  4. Recommendations on roles and authorisations in making price decisions.
  5. Recommendations for an optimal information flow chart and analytical tools necessary for effective implementation of the process.

Benefits of optimizing pricing processes

The main benefit of an audit of pricing processes is the identification of the potential for lost profit margin as a result of inefficient pricing processes and recommendations for their optimisation.

Organisations that consistently optimise their pricing processes reduce margin leaks, are more price-competitive and reduce the risk of participating in harmful price wars.

We support clients through:

  • Implementation of pricing audits

We help our clients earn more from their prices

Thanks to the price research and workshops with pricingLAB, we have better understood how customers perceive the value and prices of Michelin products. This knowledge is invaluable for making decisions on product development strategies.

Elżbieta Peda
Truck Product Line Marketing Director in ECN Michelin

Price research and consultations with pricingLAB have helped us to set the prices of our products according to the unique value we offer to our customers.

Artur Węgłowski
CEO of Farmio S.A.

PricingLAB recommendations regarding pricing methods based on the price sensitivity of products and customer segmentation contributed to a significant increase in profit in our company.

Mirosław Szydłowski
President of the Management Board of PBS Connect Polska

Do not lose money because of the wrong pricing!