CRAPIDO® – a more shiny, polished and digestible Responsibility Assignment Matrix.

CRAPIDO® is a superior Responsibility Assignment Matrix to help you manage your businesses processes more efficiently and effectively. It has more roles, and specifically more useful roles than other RAMS such as RACI and RAPID®, and, as such, it can form a key component of your Business Process Documentation. Here’s a mock-up of what the end result from using CRAPIDO® could look like:

CRAPIDO® is a more complete, practical and usable Responsibility Assignment Matrix than any other that has been published so far. Well, I would say that wouldn’t I? It’s easy to use and for some reason, a lot more fun to use than the other RAMs. But what else makes it better?

CRAPIDO® makes your RAM more digestible ….

There’s some other subtle stuff that you can do with your RAM:

  1. Don’t use primary colors: use a less alarming, more soothing, tonal palette. Remember, the more your execs get paid, the more easily spooked they are by bright, shiny and quite frankly shouty colors.
  2. Make sure the text in your column headers is horizontal. Don’t use vertically rotated text just to squeeze lots of columns in. There are reasons why our eyes are side-by-side.
  3. Use an “interesting” font but nothing too wacky. Remember that the ability of an executive to absorb information in an unfamiliar font is inversely proportional their job level in the organization.

I could give you an example of bad practice here but frankly I’m not going to visually pollute this post with some of the stuff I’ve had to endure in the past. But you have to imagine, column headers with vertically rotated text in primary colors and, yes, Arial font. But there again, if you want to disguise your content and/or try and dissuade anyone from even reviewing your content even if they want to, that’s an excellent way to do it.

Using a consistent taxonomy for your Process Attributes will make your life easier.

Here are some examples of Process Attributes that you could be using – or some variant of this – to consistently define the dimensions of your processes.

  • Hint: one way to leverage this is to create a global process with a minimal number of variants.
  • Wink: Pick your best-selling product, your best-selling upgrade, and your best-selling service as three product standards, with (again) the minimum numbers of variants for everything else.
  • Nudge: use the taxonomy to re-cycle Process Attributes and save yourself from having to reinvent parameters for your each of your processes from scratch.

So what will CRAPIDO® not help you avoid?

  1. It will not help you avoid is taking the initiative and putting the effort into to documenting your processes. CRAPIDO® will make it easier, but at the end of the day it will require some initiative and effort on your part.
  2. You will need to keep your processes up-to-date particularly to reflect organizational changes and major product launches. Include process updates as a standard part of your strategy & policy updating process. If you like, have a process for updating processes ….. keep on top of it. You’ll surprise yourself – and Internal Audit – when you do.
  3. The next problem is simply missing or overlooking a process which delivers a key competitive advantage. Can you imagine that you’re not doing something which could deliver a key competitive advantage? No? Have you ever asked yourself the question? Is the competition doing something that you’re not? You should. You really, really should.
  4. Once you’ve done this, don’t stop. There is more to do, much more, specifically ensuring that all your processes are complete, integrated, synchronized and then optimized. Well let’s ask the question. Are all your processes complete? Fully integrated? Synchronized? And optimized? Of course not. Check out my End-to-End-Pricing paper published by the Professional Pricing Society.

Finally, and most importantly, for some unknown reason, CRAPIDO® makes assigning roles & responsibilities somehow more digestible, less painful and more fun than it would be otherwise. Now, can you say that about any other Responsibility Assignment Matrix!?! I thought not. CRAPIDO® – for the Crap You Do!

You’re welcome.

#CRAPIDO

Copyright © 2018 The Pricing Factory®.
CRAPIDO® is a registered trademark belonging to The Pricing Factory®.
RAPID® is a registered trademark belonging to Bain and Company

CRAPIDO® – a brand new Responsibility Assignment Matrix

Empty interior with wooden floor and grunge wallDo you know how pricing works in your organization? Do you know who is meant to be doing what? Do you know what your involvement in it is? Do you know where to find these things out? In many organizations pricing isn’t clearly defined and, even if it is documented, it’s done badly. Here I’d like to introduce CRAPIDO® as a key component to help you design and build pricing processes to achieve your business goals through more consistent and predictable outcomes. That of course is the polite way of saying it.

What is CRAPIDO®?

CRAPIDO® is a more complete, practical and usable Responsibility Assignment Matrix (RAM). It can be used to clearly define roles and responsibilities in pricing or indeed any other business process. Without an effective RAM, you’ll find a business is inefficient, ineffective and dysfunctional. And the people in them, under-performing and frustrated. Designing and documenting your business processes is an essential first step on the path to improve the way your business performs.

What is Business Process Documentation?

  1. A Responsibility Assignment Matrix (RAM) – this is who gets to decide what, who does the hard work, who has to be informed, etc. etc. This where CRAPIDO® comes in.
  2. Document the steps in your process in the form of a Business Process Flow-chart.
  3. A list of Job Responsibilities by Job Function – which is an abstraction from (1) & (2). This is so you can sit down with someone and say, this is how and when you are/are not involved in these processes, and let me tell you why.
  4. A Business Process Architecture of all your processes which outlines how they intersect and interrelate. This is so you can show folks how stuff fits together to enable them to envisage a complete picture.
  5. And you also need: a Process for Updating Processes and
  6. A Process for Updating Architectures. You need to be able to show that your processes and architectures are open to improvement, responsive to feedback, and adaptable to organizational changes.

So what exactly is CRAPIDO®?

CRAPIDO® is a more complete, practical and usable Responsibility Assignment Matrix than any other that has been been published. Well, I would say that wouldn’t I? It has a complete suite of roles, it’s easy to use and for some reason, a lot more fun to use than the other RAMs.

So what’s wrong with existing Responsibility Assignment Matrices?

The basic problem with other Responsibility Assignment Matrices (RAM) is that they simply do not have enough roles: most have four or five, CRAPIDO® has seven. Count them. Seven. And while I am a great believer in less is more, this is not one of those cases. RAMs with four or five roles are at least two or three sandwiches short of a picnic.

Having had to use RACI & RAPID® extensively – only because they were the corporate standard – I found them extremely frustrating. From my perspective of defining pricing roles and responsibilities, they are limited and incomplete. CRAPIDO® has been specifically designed to eliminate those frustrations.

RACI misses out on Agree, Perform and Out-of-the-loop. All rather essential elements, particularly in pricing.

RAPID® critically misses out Informed and Out-of-the-loop. Informed is part of RACI, PACSI, RASCI, RASI, RACIQ, RACI-VS, CAIRO, DACI & RATSI but somehow does not make it into RAPID®. This particularly problematic for pricing where communication of pricing decisions – both internally and externally – is crucial.

PACSI lacks a Recommender; RASCI is a bit kumbaya but nevertheless slightly improved version of RACI; RATSI misses out the Agree and Out-of-Loop roles and also doesn’t have a clearly called out role for Recommend. But one thing they all have in common: insufficient roles. RACI-VS comes closest with six roles but is really only suited for very bureaucratic or structured environments. Those extra roles are Verifier and Signatory, neither of which is really needed in business.

CAIRO is strangely the only other RAM which includes Out-of-the-Loop but still manages to be incomplete. Out-of-the-Loop is not just some crap I made up. Out-of-the-Loop is the opposite of In-the-Loop in case you’re unclear. If you’re in THE pricing meeting, you’re “In-the-Loop”. If you’re out of THE pricing meeting, then you’re “Out-of-the-Loop”. Really. Oh, and if your pricing meetings aren’t that vital, maybe you should put some effort in to making them that vital (before your competitors make theirs more vital than yours).

So what does CRAPIDO® look like?

Well, here it is in all its technicolor glory. Who gets to do what by job function, by process.

All told, it’s small, but I hope you’ll agree, perfectly formed.

It’s all agreed, documented and then parked on an internal website. Now no-one can claim that they don’t know what the process is, how to get involved, what their role is. It should be reviewed at least annually with quarterly opportunities to modify if required. All disagreements on who should be doing what will dissipate to a distant memory.

The real skill is making sure you have have an agreed philosophy for the allocation of decision-making responsibilities, the right processes defined (the rows), and, oh yes, and use Out-of-the-Loop to take out groups or individuals who don’t add value and slow the process down. O!

So there you have it: CRAPIDO®

Finally, and most importantly, for some unknown reason, CRAPIDO® makes assigning roles & responsibilities somehow more digestible, less painful and more fun than it would be otherwise. Now, can you say that about any other Responsibility Assignment Matrix!?! I thought not.

CRAPIDO® – well, let’s just say it and get it out there – for the Crap You Do!

You’re welcome.

#CRAPIDO

Copyright © 2018 The Pricing Factory®.
CRAPIDO® is a registered trademark belonging to The Pricing Factory®.
RAPID® is a registered trademark belonging to Bain and Company

Paul’s Pricing Puzzle Part 3: Can You Guess When This Business Had Its Pricing Mojo?

No? Not surprising really because it’s never had its pricing mojo. Bit of a trick question there. But do you see how the revenue . just .. slowly … trails …. off ….. like ….. a ……

Sorry! Dozed off there completely. But this is what your revenue will look like if you do not pay attention to pricing!

I think they always knew they had a problem but they just didn’t want to admit that their replacement of the company’s core product was technologically obsolete by the time it was launched. This was exacerbated by senior execs – I’m using the term “senior” very loosely at this point – longing for the old days of “proper computing”. Whatever that was. I think the last time we had “proper computing” was when there was a British Empire, Morris Minors, 8″ floppies, before The Cuckoo’s Egg, that sort of thing.

But out of all the problems they had, I bet they never once considered that part of their problem was that their pricing strategy was continually undermining the business. It wasn’t just the obsolete technology, the lack of backward compatibility, the disintegration of their application ecosystem, their failure to modernize their GTM mechanism, the collapse of their support model due to using much more reliable components, virtualization, hyper-converged infrastructure, the cloud, the rise of OEMs … It was also pricing. All the time, it was pricing.

If you’ve never got your pricing mojo working, if you’ve never experienced the thrill of crushing the competition because your pricing is just so on top of it …. then get a real expert in. Someone who actually knows what they are doing.

Better Call Paul 281-782-9821

Paul’s Pricing Puzzle Part 2: Can You Guess When This Business Implemented an Enterprise-wide Revenue Management, Profitability & Pricing System?

No? Not surprising really because neither can they. “System” is one word for it; “tool” is another.

Don’t waste your time and money implementing a pricing system without knowing what you’re really doing.

Get a real expert in. Someone who actually knows what they are doing.

Do you want to see what their competition was doing? Sure you do …

Just make sure it doesn’t happen to you.

Better Call Paul 281-782-9821 Ask for a conflict check sooner than, well, before you end up like Competitor #1.

Paul’s Pricing Puzzle: Can You Guess When This Business Lost Its Pricing Mojo?

Can you see when this business lost its pricing mojo? [Go on. Click on it. It won’t bite]

Good for you! Then you’re one up one them. They can’t.

Beyond that, can you see why it lost its pricing mojo? Probably not from this information alone. So when it comes to asking what exactly did they lose by losing their pricing mojo, the short, sharp snappy answer would be that they lost 13.5%% of market-share which at $112M per point of market-share adds to up to $1.5Bn/year of lost gross margin per year. Now that’s very careless I think you would agree.

Now, if you want to get your pricing mojo back, call a real pricing expert. Not one of those famous big name consultants, but someone who will actually find out what your problems are, fix them quickly, and get your pricing mojo back.

Better Call Paul 281-782-9821 (before someone else does).

Paul’s Pricing Dictionary: Cool Pricing Play

Cool Pricing Play, n. Usually asked for by a CEO or GM who doesn’t realize – or doesn’t want to admit –  that they are not doing pricing basics right. Or maybe they just don’t want to invest the time or energy into getting the basics right. A bit of a tell.

But allow me to tell you one fact: if you don’t get the basics right, you’ll never have an impactful or successful “cool pricing play”. Ever.

 

 

Previously from Paul’s Pricing Dictionary:

Bad Selling, adj.+gen. Bad Selling is somehow always absent as an option in Bid-Loss analysis. But if there ever was a Bid-Win analysis, I’m sure that Good Selling would somehow get 100% of the credit. Of this I feel absolutely sure.

Big Data, n. pl. but s. or pl. in constr., often attrib. It doesn’t matter how big your data is, how big your cube is. It’s how much insight you get from it that counts. And how quickly.

Currency, n. 1) The first refuge of the scoundrel when there is the slightest adverse movement in exchange rates to excuse crap business performance. This is a phenomenon which miraculously disappears just as soon as there is a beneficial shift in exchange rates. 2) Usually a key ingredient in a cocktail beloved of CEOs called “The Perfect Storm” to explain away a quarter of exceptional – and to everyone except them – entirely predictable under-performance (recipe available under NDA) 3) The perfect excuse for a list price increase and just one of the many reasons why list prices matter.

Defuddle, vb. What your Pricing Team does for you if you are befuddled, particularly on matters of channel demarcation, deal registration and sincerity.

Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Haste, n. Hurry, rush. Price in haste, re-price at leisure. (Adapt., William Congreve, The Old Batchelor, 1693)

Insight, n. What your Pricing Team should be providing you with. Insight from your Pricing Team should come in two distinct flavors:

Business Insight, n – into your business performance

Competitive Insight, n – into your competitors’ performance

Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that no-one else will read it and, most of all, the author will not be held to account for its contents. Ever.

Meta Price Analysis Value (MPAV), n. Analysis which determines how much and what type of price analysis needs to be done in order to create insights which the can help drive the business towards its goals.

It’s not how much analysis you do that matters; nor is it how much data you can churn that’s going to impress people. It’s actually how little you need to do, how quick it is, how repeatable and intelligible the analysis is, and most importantly – pause – how much insight you create in the process:

Meta Price Analysis Value = ∫{Insight, Speed, Repeatability, Intelligibility / Effort}

New Product Insanity (NPI), n. Thinking that your next New Product will fix all your business problems when it has never done so in the past. Why? Because you didn’t fix your historic pricing problems. New product, old pricing problems. You know it. But you’re shareholders don’t. Not yet. But they will find out. Sooner or later. One way or another.

Organizational Memory, n. The Pricing Team. The Pricing Team remembers what worked and what didn’t work. It has a longer data retention period than anyone other than Tax. And unlike Finance, well, let’s just say, they are unlike Finance. The Pricing Team just knows where the data (coll. n. s.) is and lots, lots more. I thought I would list how much more but it started getting creepy so I stopped. You’re welcome.

Panic, n. If your Pricing Team isn’t panicking, don’t panic. But before you totally relax, please have your Pricing Team’s Pricing Intelligence checked out because there is a reason why they might not be panicking. However if the Pricing Team is panicking, then you should really feel free to panic.

Patience, n. Something pricing folks have in abundance, but don’t you worry, I’ll talk to your successor about it if you don’t have the time, inclination or courage to do so.

Prevarication, n. Pricing problems. The longer you leave them, the worse they get, the more money you leave on the table, the more they cost to fix. Just saying.

Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Pricing, v.tr. 1) Sales hears “discounting”, 2) Product Group hears “list pricing”. So when someone says, Houston, I’ve got a pricing problem, the first thing to do is work out is this a list pricing problem or a discounting problem. Best not to use the word “pricing” standalone unless you want to waste everyone’s time.

Pricing Drag, n. When your history of bad pricing and your disinclination to fix it creates a incessant drag on your business performance, your ROIC & consequently your stock price.

Pricing Intelligence, n. The first thing you lose when you allow your Pricing Team to break up. The second thing? Well, you shouldn’t have allowed your Pricing Team to break-up, otherwise you would have known what that was. (Your Pricing Team would have briefed you).

Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery. See Margin Recovery Plan.

Uncompetitive Products Costs, n.pl. The old lie 50% of the time; an uncomfortable truth for the other 50. But how can you tell whether your product costs are competitive or not? Your Pricing Team should be protecting Sales from uncompetitive product costs while defending the Product Group against false assertions from Sales that the products are not cost competitive, and, at the same time – who said this was going to be easy? – protect the corporation from bullshit excuses from both.

Value, n. or adj.  Often mistaken to mean “cheapest” or “budget” by consumers, marketing people, and – sigh – product managers of Intel/X86-based products; while simultaneously mistaken by others who make proprietary servers to mean “expensive”. Rather ironically, neither represent value in the true sense of the word.

Value Server, n. Misnomer. Hist. Very high list price, very high discount product wrapped up with some sort of an assumption that you’ll also pay through the nose for o/s’s, apps, storage and services. Not a value server at all in the true economic sense of the word “value”. For a true value server with a reliable processor, investment protection in innovation within industry standards, and a product roadmap which actually exists, see, rather ironically, “Volume Server.”

  • Incapable of acting as a coffee cup holder: for superior coffee-cup holding – and many other – capabilities of X86 servers – with forward and reverse coffee-cup compatibility – please refer to “Volume Server”.
  • Sometimes mistakenly referred to as a “proper computer” by Enterprise EVPs. For an “improper server” presumably I would have to refer you to – again – “Volume Server”.
  • Also see under “Failed Pricing Strategies”. No, the technology and ecosystem aren’t the only problems. High list, high discount? Just cruising for a bruising. Forever exposed to those who like to get their retaliation in first. Just saying.

Volume Server, n. More specifically, a volume server is a high volume server simply because it is good value for money. Should really be called a value server because value is the cause and volume the symptom. But that would be far too straightforward and understandable. See “Value Server”.

Paul’s Pricing Dictionary: Value Server

Value Server, n. Misnomer. Hist. Very high list price, very high discount product wrapped up with some sort of an assumption that you’ll also pay through the nose for o/s’s, apps, storage and services. Not a value server at all in the true economic sense of the word “value”. For a true value server with a reliable processor, investment protection in innovation within industry standards, and a product roadmap which actually exists, see, rather ironically, “Volume Server.”

  • Incapable of acting as a coffee cup holder: for superior coffee-cup holding – and many other – capabilities of X86 servers – with forward and reverse coffee-cup compatibility – please refer to “Volume Server”.
  • Sometimes mistakenly referred to as a “proper computer” by Enterprise EVPs. For an “improper server” presumably I would have to refer you to – again – “Volume Server”.
  • Also see under “Failed Pricing Strategies”. No, the technology and ecosystem aren’t the only problems. High list, high discount? Just cruising for a bruising. Forever exposed to those who like to get their retaliation in first. Just saying.

 

Previously from Paul’s Pricing Dictionary:

Bad Selling, adj.+gen. Bad Selling is somehow always absent as an option in Bid-Loss analysis. But if there ever was a Bid-Win analysis, I’m sure that Good Selling would somehow get 100% of the credit. Of this I feel absolutely sure.

Big Data, n. pl. but s. or pl. in constr., often attrib. It doesn’t matter how big your data is, how big your cube is. It’s how much insight you get from it that counts. And how quickly.

Currency, n. 1) The first refuge of the scoundrel when there is the slightest adverse movement in exchange rates to excuse crap business performance. This is a phenomenon which miraculously disappears just as soon as there is a beneficial shift in exchange rates. 2) Usually a key ingredient in a cocktail beloved of CEOs called “The Perfect Storm” to explain away a quarter of exceptional – and to everyone except them – entirely predictable under-performance (recipe available under NDA) 3) The perfect excuse for a list price increase and just one of the many reasons why list prices matter.

Defuddle, vb. What your Pricing Team does for you if you are befuddled, particularly on matters of channel demarcation, deal registration and sincerity.

Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Haste, n. Hurry, rush. Price in haste, re-price at leisure. (Adapt., William Congreve, The Old Batchelor, 1693)

Insight, n. What your Pricing Team should be providing you with. Insight from your Pricing Team should come in two distinct flavors:

Business Insight, n – into your business performance

Competitive Insight, n – into your competitors’ performance

Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that no-one else will read it and, most of all, the author will not be held to account for its contents. Ever.

Meta Price Analysis Value (MPAV), n. Analysis which determines how much and what type of price analysis needs to be done in order to create insights which the can help drive the business towards its goals.

It’s not how much analysis you do that matters; nor is it how much data you can churn that’s going to impress people. It’s actually how little you need to do, how quick it is, how repeatable and intelligible the analysis is, and most importantly – pause – how much insight you create in the process:

Meta Price Analysis Value = ∫{Insight, Speed, Repeatability, Intelligibility / Effort}

New Product Insanity (NPI), n. Thinking that your next New Product will fix all your business problems when it has never done so in the past. Why? Because you didn’t fix your historic pricing problems. New product, old pricing problems. You know it. But you’re shareholders don’t. Not yet. But they will find out. Sooner or later. One way or another.

Organizational Memory, n. The Pricing Team. The Pricing Team remembers what worked and what didn’t work. It has a longer data retention period than anyone other than Tax. And unlike Finance, well, let’s just say, they are unlike Finance. The Pricing Team just knows where the data (coll. n. s.) is and lots, lots more. I thought I would list how much more but it started getting creepy so I stopped. You’re welcome.

Panic, n. If your Pricing Team isn’t panicking, don’t panic. But before you totally relax, please have your Pricing Team’s Pricing Intelligence checked out because there is a reason why they might not be panicking. However if the Pricing Team is panicking, then you should really feel free to panic.

Patience, n. Something pricing folks have in abundance, but don’t you worry, I’ll talk to your successor about it if you don’t have the time, inclination or courage to do so.

Prevarication, n. Pricing problems. The longer you leave them, the worse they get, the more money you leave on the table, the more they cost to fix. Just saying.

Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Pricing, v.tr. 1) Sales hears “discounting”, 2) Product Group hears “list pricing”. So when someone says, Houston, I’ve got a pricing problem, the first thing to do is work out is this a list pricing problem or a discounting problem. Best not to use the word “pricing” standalone unless you want to waste everyone’s time.

Pricing Drag, n. When your history of bad pricing and your disinclination to fix it creates a incessant drag on your business performance, your ROIC & consequently your stock price.

Pricing Intelligence, n. The first thing you lose when you allow your Pricing Team to break up. The second thing? Well, you shouldn’t have allowed your Pricing Team to break-up, otherwise you would have known what that was. (Your Pricing Team would have briefed you).

Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery. See Margin Recovery Plan.

Uncompetitive Products Costs, n.pl. The old lie 50% of the time; an uncomfortable truth for the other 50. But how can you tell whether your product costs are competitive or not? Your Pricing Team should be protecting Sales from uncompetitive product costs while defending the Product Group against false assertions from Sales that the products are not cost competitive, and, at the same time – who said this was going to be easy? – protect the corporation from bullshit excuses from both.

Value, n. or adj.  Often mistaken to mean “cheapest” or “budget” by consumers, marketing people, and – sigh – product managers of Intel/X86-based products; while simultaneously mistaken by others who make proprietary servers to mean “expensive”. Rather ironically, neither represent value in the true sense of the word.

Volume Server, n. More specifically, a volume server is a high volume server simply because it is good value for money. Should really be called a value server because value is the cause and volume the symptom. But that would be far too straightforward and understandable. See “Value Server”.

Paul’s Pricing Dictionary: Volume Server

Volume Server, n. More specifically, a volume server is a high volume server simply because it is good value for money. Should really be called a value server because value is the cause and volume the symptom. But that would be far too straightforward and understandable. See “Value Server”. (Well, wait a week, and strap yourselves in for “Value Server”).

 

 

Previously from Paul’s Pricing Dictionary:

Bad Selling, adj.+gen. Bad Selling is somehow always absent as an option in Bid-Loss analysis. But if there ever was a Bid-Win analysis, I’m sure that Good Selling would somehow get 100% of the credit. Of this I feel absolutely sure.

Big Data, n. pl. but s. or pl. in constr., often attrib. It doesn’t matter how big your data is, how big your cube is. It’s how much insight you get from it that counts. And how quickly.

Currency, n. 1) The first refuge of the scoundrel when there is the slightest adverse movement in exchange rates to excuse crap business performance. This is a phenomenon which miraculously disappears just as soon as there is a beneficial shift in exchange rates. 2) Usually a key ingredient in a cocktail beloved of CEOs called “The Perfect Storm” to explain away a quarter of exceptional – and to everyone except them – entirely predictable under-performance (recipe available under NDA) 3) The perfect excuse for a list price increase and just one of the many reasons why list prices matter.

Defuddle, vb. What your Pricing Team does for you if you are befuddled, particularly on matters of channel demarcation, deal registration and sincerity.

Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Haste, n. Hurry, rush. Price in haste, re-price at leisure. (Adapt., William Congreve, The Old Batchelor, 1693)

Insight, n. What your Pricing Team should be providing you with. Insight from your Pricing Team should come in two distinct flavors:

Business Insight, n – into your business performance

Competitive Insight, n – into your competitors’ performance

Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that no-one else will read it and, most of all, the author will not be held to account for its contents. Ever.

Meta Price Analysis Value (MPAV), n. Analysis which determines how much and what type of price analysis needs to be done in order to create insights which the can help drive the business towards its goals.

It’s not how much analysis you do that matters; nor is it how much data you can churn that’s going to impress people. It’s actually how little you need to do, how quick it is, how repeatable and intelligible the analysis is, and most importantly – pause – how much insight you create in the process:

Meta Price Analysis Value = ∫{Insight, Speed, Repeatability, Intelligibility / Effort}

New Product Insanity (NPI), n. Thinking that your next New Product will fix all your business problems when it has never done so in the past. Why? Because you didn’t fix your historic pricing problems. New product, old pricing problems. You know it. But you’re shareholders don’t. Not yet. But they will find out. Sooner or later. One way or another.

Organizational Memory, n. The Pricing Team. The Pricing Team remembers what worked and what didn’t work. It has a longer data retention period than anyone other than Tax. And unlike Finance, well, let’s just say, they are unlike Finance. The Pricing Team just knows where the data (coll. n. s.) is and lots, lots more. I thought I would list how much more but it started getting creepy so I stopped. You’re welcome.

Panic, n. If your Pricing Team isn’t panicking, don’t panic. But before you totally relax, please have your Pricing Team’s Pricing Intelligence checked out because there is a reason why they might not be panicking. However if the Pricing Team is panicking, then you should really feel free to panic.

Patience, n. Something pricing folks have in abundance, but don’t you worry, I’ll talk to your successor about it if you don’t have the time, inclination or courage to do so.

Prevarication, n. Pricing problems. The longer you leave them, the worse they get, the more money you leave on the table, the more they cost to fix. Just saying.

Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Pricing, v.tr. 1) Sales hears “discounting”, 2) Product Group hears “list pricing”. So when someone says, Houston, I’ve got a pricing problem, the first thing to do is work out is this a list pricing problem or a discounting problem. Best not to use the word “pricing” standalone unless you want to waste everyone’s time.

Pricing Drag, n. When your history of bad pricing and your disinclination to fix it creates a incessant drag on your business performance, your ROIC & consequently your stock price.

Pricing Intelligence, n. The first thing you lose when you allow your Pricing Team to break up. The second thing? Well, you shouldn’t have allowed your Pricing Team to break-up, otherwise you would have known what that was. (Your Pricing Team would have briefed you).

Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery. See Margin Recovery Plan.

Uncompetitive Products Costs, n.pl. The old lie 50% of the time; an uncomfortable truth for the other 50. But how can you tell whether your product costs are competitive or not? Your Pricing Team should be protecting Sales from uncompetitive product costs while defending the Product Group against false assertions from Sales that the products are not cost competitive, and, at the same time – who said this was going to be easy? – protect the corporation from bullshit excuses from both.

Value, n. or adj.  Often mistaken to mean “cheapest” or “budget” by consumers, marketing people, and – sigh – product managers of Intel/X86-based products; while simultaneously mistaken by others who make proprietary servers to mean “expensive”. Rather ironically, neither represent value in the true sense of the word.

Paul’s Pricing Dictionary: Prevarication

Prevarication, n. Pricing problems. The longer you leave them, the worse they get, the more money you leave on the table, the more they cost to fix. Just saying.

 

 

 

Previously from Paul’s Pricing Dictionary:

Bad Selling, adj.+gen. Bad Selling is somehow always absent as an option in Bid-Loss analysis. But if there ever was a Bid-Win analysis, I’m sure that Good Selling would somehow get 100% of the credit. Of this I feel absolutely sure.

Big Data, n. pl. but s. or pl. in constr., often attrib. It doesn’t matter how big your data is, how big your cube is. It’s how much insight you get from it that counts. And how quickly.

Currency, n. 1) The first refuge of the scoundrel when there is the slightest adverse movement in exchange rates to excuse crap business performance. This is a phenomenon which miraculously disappears just as soon as there is a beneficial shift in exchange rates. 2) Usually a key ingredient in a cocktail beloved of CEOs called “The Perfect Storm” to explain away a quarter of exceptional – and to everyone except them – entirely predictable under-performance (recipe available under NDA) 3) The perfect excuse for a list price increase and just one of the many reasons why list prices matter.

Defuddle, vb. What your Pricing Team does for you if you are befuddled, particularly on matters of channel demarcation, deal registration and sincerity.

Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Haste, n. Hurry, rush. Price in haste, re-price at leisure. (Adapt., William Congreve, The Old Batchelor, 1693)

Insight, n. What your Pricing Team should be providing you with. Insight from your Pricing Team should come in two distinct flavors:

Business Insight, n – into your business performance

Competitive Insight, n – into your competitors’ performance

Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that no-one else will read it and, most of all, the author will not be held to account for its contents. Ever.

Meta Price Analysis Value (MPAV), n. Analysis which determines how much and what type of price analysis needs to be done in order to create insights which the can help drive the business towards its goals.

It’s not how much analysis you do that matters; nor is it how much data you can churn that’s going to impress people. It’s actually how little you need to do, how quick it is, how repeatable and intelligible the analysis is, and most importantly – pause – how much insight you create in the process:

Meta Price Analysis Value = ∫{Insight, Speed, Repeatability, Intelligibility / Effort}

New Product Insanity (NPI), n. Thinking that your next New Product will fix all your business problems when it has never done so in the past. Why? Because you didn’t fix your historic pricing problems. New product, old pricing problems. You know it. But you’re shareholders don’t. Not yet. But they will find out. Sooner or later. One way or another.

Organizational Memory, n. The Pricing Team. The Pricing Team remembers what worked and what didn’t work. It has a longer data retention period than anyone other than Tax. And unlike Finance, well, let’s just say, they are unlike Finance. The Pricing Team just knows where the data (coll. n. s.) is and lots, lots more. I thought I would list how much more but it started getting creepy so I stopped. You’re welcome.

Panic, n. If your Pricing Team isn’t panicking, don’t panic. But before you totally relax, please have your Pricing Team’s Pricing Intelligence checked out because there is a reason why they might not be panicking. However if the Pricing Team is panicking, then you should really feel free to panic.

Patience, n. Something pricing folks have in abundance, but don’t you worry, I’ll talk to your successor about it if you don’t have the time, inclination or courage to do so.

Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Pricing, v.tr. 1) Sales hears “discounting”, 2) Product Group hears “list pricing”. So when someone says, Houston, I’ve got a pricing problem, the first thing to do is work out is this a list pricing problem or a discounting problem. Best not to use the word “pricing” standalone unless you want to waste everyone’s time.

Pricing Drag, n. When your history of bad pricing and your disinclination to fix it creates a incessant drag on your business performance, your ROIC & consequently your stock price.

Pricing Intelligence, n. The first thing you lose when you allow your Pricing Team to break up. The second thing? Well, you shouldn’t have allowed your Pricing Team to break-up, otherwise you would have known what that was. (Your Pricing Team would have briefed you).

Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery. See Margin Recovery Plan.

Uncompetitive Products Costs, n.pl. The old lie 50% of the time; an uncomfortable truth for the other 50. But how can you tell whether your product costs are competitive or not? Your Pricing Team should be protecting Sales from uncompetitive product costs while defending the Product Group against false assertions from Sales that the products are not cost competitive, and, at the same time – who said this was going to be easy? – protect the corporation from bullshit excuses from both.

Value, n. or adj.  Often mistaken to mean “cheapest” or “budget” by consumers, marketing people, and – sigh – product managers of Intel/X86-based products; while simultaneously mistaken by others who make proprietary servers to mean “expensive”. Rather ironically, neither represent value in the true sense of the word.

Paul’s Pricing Dictionary: Value

Value, n. or adj.  Often mistaken to mean “cheapest” or “budget” by consumers, marketing people, and – sigh – product managers of Intel/X86-based products; while simultaneously mistaken by others who make proprietary servers to mean “expensive”. Rather ironically, neither represent value in the true sense of the word.

 

Previously from Paul’s Pricing Dictionary:

Bad Selling, adj.+gen. Bad Selling is somehow always absent as an option in Bid-Loss analysis. But if there ever was a Bid-Win analysis, I’m sure that Good Selling would somehow get 100% of the credit. Of this I feel absolutely sure.

Big Data, n. pl. but s. or pl. in constr., often attrib. It doesn’t matter how big your data is, how big your cube is. It’s how much insight you get from it that counts. And how quickly.

Currency, n. 1) The first refuge of the scoundrel when there is the slightest adverse movement in exchange rates to excuse crap business performance. This is a phenomenon which miraculously disappears just as soon as there is a beneficial shift in exchange rates. 2) Usually a key ingredient in a cocktail beloved of CEOs called “The Perfect Storm” to explain away a quarter of exceptional – and to everyone except them – entirely predictable under-performance (recipe available under NDA) 3) The perfect excuse for a list price increase and just one of the many reasons why list prices matter.

Defuddle, vb. What your Pricing Team does for you if you are befuddled, particularly on matters of channel demarcation, deal registration and sincerity.

Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Haste, n. Hurry, rush. Price in haste, re-price at leisure. (Adapt., William Congreve, The Old Batchelor, 1693)

Insight, n. What your Pricing Team should be providing you with. Insight from your Pricing Team should come in two distinct flavors:

Business Insight, n – into your business performance

Competitive Insight, n – into your competitors’ performance

Margin Recovery Plan, n. A work of complete fiction written by Sales in the hope that no-one else will read it and, most of all, the author will not be held to account for its contents. Ever.

Meta Price Analysis Value (MPAV), n.

Analysis which determines how much and what type of price analysis needs to be done in order to create insights which the can help drive the business towards its goals.

It’s not how much analysis you do that matters; nor is it how much data you can churn that’s going to impress people. It’s actually how little you need to do, how quick it is, how repeatable and intelligible the analysis is, and most importantly – pause – how much insight you create in the process:

Meta Price Analysis Value = ∫{Insight, Speed, Repeatability, Intelligibility / Effort}

New Product Insanity (NPI), n. Thinking that your next New Product will fix all your business problems when it has never done so in the past. Why? Because you didn’t fix your historic pricing problems. New product, old pricing problems. You know it. But you’re shareholders don’t. Not yet. But they will find out. Sooner or later. One way or another.

Organizational Memory, n. The Pricing Team. The Pricing Team remembers what worked and what didn’t work. It has a longer data retention period than anyone other than Tax. And unlike Finance, well, let’s just say, they are unlike Finance. The Pricing Team just knows where the data (coll. n. s.) is and lots, lots more. I thought I would list how much more but it started getting creepy so I stopped. You’re welcome.

Panic, n. If your Pricing Team isn’t panicking, don’t panic. But before you totally relax, please have your Pricing Team’s Pricing Intelligence checked out because there is a reason why they might not be panicking. However if the Pricing Team is panicking, then you should really feel free to panic.

Patience, n. Something pricing folks have in abundance, but don’t you worry, I’ll talk to your successor about it if you don’t have the time, inclination or courage to do so.

Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Pricing, v.tr. 1) Sales hears “discounting”, 2) Product Group hears “list pricing”. So when someone says, Houston, I’ve got a pricing problem, the first thing to do is work out is this a list pricing problem or a discounting problem. Best not to use the word “pricing” standalone unless you want to waste everyone’s time.

Pricing Drag, n. When your history of bad pricing and your disinclination to fix it creates a incessant drag on your business performance, your ROIC & consequently your stock price.

Pricing Intelligence, n. The first thing you lose when you allow your Pricing Team to break up. The second thing? Well, you shouldn’t have allowed your Pricing Team to break-up, otherwise you would have known what that was. (Your Pricing Team would have briefed you).

Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery. See Margin Recovery Plan.

Uncompetitive Products Costs, n.pl. The old lie 50% of the time; an uncomfortable truth for the other 50. But how can you tell whether your product costs are competitive or not? Your Pricing Team should be protecting Sales from uncompetitive product costs while defending the Product Group against false assertions from Sales that the products are not cost competitive, and, at the same time – who said this was going to be easy? – protect the corporation from bullshit excuses from both.

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