Pricing performance improvement

How to Create a Price Performance Improvement Plan

The importance to create a Price Performance Improvement Plan  for your company cannot be understated. In more ways than one, your business may be struggling due to your pricing strategy, and you may be oblivious to it all along. 


A price-performance improvement plan (PPIP) is another word a price-performance action plan. This tool is used to provide a company suffering from price-performance problems like lower EBITDA with the chance to be successful. 


In most cases, it is often used to steer and boost a company  towards its profit and revenue goal(s). 

Importance of Price Performance Improvement Plan

Most portfolio companies should spend a significant amount of time on their pricing strategy & processes.


According to Wharto’s research –  companies often don’t set the right pricing from the beginning. Also, they found that pricing strategies have a significant influence on a company’s profits.


The old practice adopted by businesses was to set a specific non-dynamic or value based price with the expectations of having positive results. The reason most portfolio companies take this approach is simple – choosing and executing the appropriate pricing strategy is difficult.


Nonetheless, this practice isn’t the ideal way for businesses; that is why creating a price-performance improvement plan is essential. Pricing has to be strategic and systematic. Among other things, portfolio companies must identify their target customers and understand the price they are willing to pay for a service or product.


Besides, companies must also understand the importance of creating a price-performance improvement plan to stand out from the competition by choosing the right prices. Doing this emits signals about your product or service exclusivity and quality. 


How PPIP Works

The Consultants bvba – which happens to be a boutique management consulting  – makes use of several forces like business transformation, commercial excellence, and pricing to create the appropriate price-performance improvement program. The suitable combination of these tools is judiciously put to work for the success of the program. 


From the start, we carry out thorough research, and we’ll recommend the best strategy that will suit your business needs. The moment this strategy is validated, we take the next step to ensure with you as interim managers or in-house experts to ensure  a smooth implementation. 


All these and more are done in line with your stated goals EBITDA, revenue, costs.  We’ll create the process, structure , design a workable road map, and set milestones every step of the way. 


To create a pricing performance improvement program, we cover areas like profitability, pricing maturity diagnosis, governance, value-based selling, price sensitivity and value-based pricing.


Running a Pricing Maturity Diagnosis (PMD)

A pricing maturity diagnosis (PMD) is the act of carrying out a thorough assessment of the company’s current pricing abilities and opportunities for improvement. 


To ensure this is carried out duly, the criteria we use are both qualitative and quantitative. We do this to ensure nothing is left to chance, and all factors are considered. 


Milestones are described and set in the course of the project, and they are tied to a definite timeline. We’ll also put everything in place to ensure these milestones are achievable. All pricing areas are assessed continuously and reviewed like analysis, control, data management, etc. 


Other aspects, like your operational strategies, are not left out either. We also take note of factors like your company’s structure, suppliers, regulations, suppliers, competitors, and more. The PMD is a roadmap that guides every action taken. 


All these are done in  collaboration with  your company’s staff. On the other hand, we can also recommend you go through the pricing maturity process. 


If you’re ready to take your business to the next level and get the perfect fit pricing strategy, don’t hesitate to contact us. 


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How to create a Price Performance Improvement Plan


“Boosting your Business Performance is our Passion” The Consultants BVBA is an advisory and In-house expert company focusing Pricing, Commercial Excellence & Business Transformation.


Author Baydhir Badjoko,




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