Customer & Sales

Value-based pricing

Turn customer value into profitable pricing decisions

How

SHAiPE: the LTPlabs framework

Set the Decision
- Clarify the decision to be taken
  corridors, discount limits, target price
- Set the level of detail
  global, per customer, per segment
- Define the decision cadence
  per RFQ, per day, per quarter
Highlight what matters
- Align on strategic metrics
  margin, conversion, revenue
- Define the key constraints
  price hierarchies, strategic guardrails, competitive positioning, compliance
- Identify the key drivers that differentiate willingness-to-pay
Augment with AI
- Assess customer willingness to pay at the defined level of detail
- Historic pricing
  Cust. behavior
  Market data
  Historical conversion
  Conversion rate
- Leverage prescriptive AI to find the price that maximizes the defined goal, complying with the identified business constraints
Prototype your solution
- Develop a prototype tool that allows pricing planners to analyze and play with the recommendations
- Run a practical pilot to evaluate the solution in real-life business setting
Expand to scale
- Turn the pricing tool from a prototype to product with stellar user interfaces and monitor dashboards, connected with other enterprise systems to promote maximum efficiency
- Establish the governance and cycle for the new pricing process

Nutshell

3%—8%

gross margin uplift

Faster, more consistent pricing decisions, with clear governance
Less reliant on individual know-how and experience
Provides objective, auditable arguments to align sales, finance, and strategy, breaking silos
Aligns pricing decisions with strategic priorities

Insights