Paul’s Pricing Dictionary: Organizational Memory.

P 150x150Organizational 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.

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.

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

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.

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

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. No, don’t see the Margin Recovery Plan. That wasn’t the point of having a plan. The point was to have a plan so you’d sign off on the deal and hopefully forget about the plan and not hold anyone accountable.

Paul’s Pricing Dictionary: Bad Selling

P 150x150Bad 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.

 

Previously from Paul’s Pricing Dictionary:

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

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.

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

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.

Paul’s Pricing Dictionary: Insight

P 150x150Insight, n. What your Pricing Team should be providing you with. If they are not, call this number: 281-782-9821. 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

Sprinkles extra.

 

Previously from Paul’s Pricing Dictionary:

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

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.

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

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

Paul’s Pricing Dictionary: Margin Recovery Plan

P 150x150Margin 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.

Previously from Paul’s Pricing Dictionary:

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

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

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

Paul’s Pricing Dictionary: Happiness

P 150x150Happiness, n. A feeling of well-being which is directly proportional to your gross margin %.

Previously from Paul’s Pricing Dictionary:

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

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

Paul’s Pricing Dictionary: Strategic Deal

P 150x150Strategic Deal, n. deal struck at a massively negative gross margin by CxO or Executive Sponsor, usually without any hope of margin recovery.

 

Previously from Paul’s Pricing Dictionary:

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

Paul’s Pricing Dictionary: Price

P 150x150Price, n. Value, plus a reasonable sum for wear and tear of conscience in demanding it. (qv, Ambrose Bierce, The Enlarged Devil’s Dictionary)

Paul’s Pricing Dictionary: Pricing Audit

 

Pricing Audit, n.

Internal Audit’s favorite choice of audit which they do as often as they can because it’s the most interesting thing they can find to audit. It’s an area of the business where they know they least, can learn the most, and it’s actually interesting.

Having said that, I’ve been totally underwhelmed by Pricing Audits either completely missing what’s important – such as critical business processes which weren’t being performed, key metrics not identified let alone measured, and incomplete pricing strategies etc – or avoiding difficult issues, like breaking up audit finds and spreading them across the organization because they didn’t want to appear to be “victimizing” one particularly delinquent group.

If you’re relying on a Pricing Audit by your Internal Audit to identify your pricing issues, don’t. Get someone in who knows something about pricing. Call 281-782-9821.

Paul’s Pricing Dictionary: Why You Might Not Have Uncompetitive Product Costs After All

 

Uncompetitive Product Costs, n.pl.

Have you ever thought that you might have competitive product costs after all, and that it’s your pricing that sucks? Just saying.

Maybe the way your bid team analyzes the deal is different to the competition? Maybe the scope of their analysis is different? Maybe their criteria for what is acceptable is different? Maybe they know how to structure deals better than you do?

Maybe you haven’t structured the deal correctly? Maybe you need to re-structure the deal.

How is sales comp impacting this? Sales management? Sales behavior?

Maybe you need to get a pricing expert in? Someone who can give you a better idea of whether you are cost uncompetitive or not.

Maybe.

Paul’s Pricing Dictionary: Uncompetitive Product Costs

 

Uncompetitive Product Costs, n.pl.

Have you ever thought that you might have competitive product costs after all, and that it’s your pricing that sucks? Just saying.

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