January 27, 2016
Effective price execution: enhanced profits
By: Rob Friedman

Establishing list prices for products and services can be an extensive undertaking that requires an understanding of a company’s internal costs, the relative prices and benefits of competitive alternatives, and the sensitivity of customers to different price levels. Management often spends significant time determining its products’ and services’ list prices and then distributes them to some combination of retail outlets, direct salespeople, and third-party distributors hoping that these prices reflect what customers will actually pay. The reality is that in most businesses, there are a variety of reasons customers may pay something different, and mostly less, than the list price. Some of these reasons are due to outright errors, while others are due to the fact that customers and salespeople often negotiate and strike deals that ultimately may not be consistent with management’s broader objectives. 

Before a manager can ensure he or she is doing all that can be done to improve the quality of how prices are executed in the field, he or she must be able to:

  • Identify the concept of price execution.

  • Analyze transactional price assessment.

  • Assess historical transaction information.

  • Analyze assessment results for improving price execution.

How can management increase the likelihood that any decisions made in the field that deviate from the list prices are both intentional and consistent with its objectives? How can management even know what is taking place? What information should management gather on a regular basis to assess the situation? What issues is management likely to discover, and what steps can it take to minimize them going forward? Management has at its disposal vast amounts of information regarding price execution—everything pricing related that occurs after the point of determining list prices—which is often vastly underutilized in seeking answers to these questions. 

The Accenture Academy course Managing Price Execution provides an understanding of the complexities of price execution, including the specific data that should be gathered, the analyses that should be completed, and the areas on which to focus to tighten the pricing-related processes that ultimately determine the price customers pay and the company’s resulting profitability.

About Accenture Academy

Accenture Academy offers proven, cost-effective learning solutions for a more versatile workforce and a more agile organization. We provide a flexible learning approach that helps your people be more versatile and your entire organization be more agile in the marketplace. Curriculum includes Supply Chain Management, Finance, Procurement, Analytics, Leadership & Management and Specialty Skills.


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