Software/Service Pricing Optimisation Specialist- Paris

Project status
Project start date
17 Feb 2019
Project posted
28 Jan 2019 10:30
Project duration (approx.)
2.0 Months
Budget (approx.)
€80000 (fixed cost)
Area of expertise
Strategy
Consultant location
On-site
Location
France
Languages
French (Essential)

Objectives and Key Deliverables

Our company provides software and service solutions in the intellectual property field. It is based in France (Paris) and has a very international footprint with 62% of its sales in the US, 26% in Europe and the remainder in Asia (especially Japan and China). It serves primarily large and mid-size corporations.

We are looking to undertake pricing optimization at our company. This will be conducted in Paris at our company site where the Sales VP is located. During this project there will be a requirement to take one or two trips abroad during the diagnostic phase. (e.g. to the US).

Project Details:

Phase 1 of pricing optimization: pricing diagnostic (expected to last for 2 months)
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The goal of the pricing diagnostic is twofold:
- Review current pricing practices both from a quantitative viewpoint (e.g. price point analysis) and from a qualitative viewpoint (e.g. processes, tools, salesforce bonus schemes)
- Identify and quantify potential pricing improvement levers
The work will be conducted on 2 main business lines.

The goals will be achieved by the following actions:

1. Quantitative analysis

- Collect all pricing information (primarily sales database including price points) by product/service, customer and sales person over the last 3 years
- Segment customers along distinct relevant segments based on dimensions to be defined (e.g. customer geography, size, sector…)
- Analyse historical price evolution across all dimensions (segments, customers, products/service), taking into account impact of potentially increasing sales with customers
- Analyse current price spread per product/service between customers within each segment
- Analyse gross margin per customer and per product/service
- Analyse deal win-loss analysis and correlation with price levels

2. Qualitative analysis

- Conduct interviews with ~20 employees (e.g. BU heads, sales, marketing, controlling) to assess current pricing maturity and practices, spot major key competitive advantages vs competition, understand knowledge on competitors’ prices, identify potential ideas on pricing improvement
- Review current pricing model (e.g. price increase versus up-sell via additional functionalities)
- Review current pricing processes (e.g. price validation chain), tools (e.g. price lists), and salesforce bonus schemes

3. Recommendations

- Articulate potential pricing levers
- Size potential EBITDA gain per lever, with a view on the roll-out time
- Make recommendations on improving pricing processes, tools, salesforce bonus schemes, training
- Define high level implementation roadmap


Phase 2 of pricing optimization: implementation phase (this phase may last for a few months).
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The implementation phase may include the following activities

- Run a program management office (PMO) to make sure that decided actions are implemented in a timely manner
- Build a price configurator
- Support the sales team to write pricing action plans account by account in order to implement the levers identified during the diagnostic
- Train the sales team on pricing
- Support management to facilitate change management regarding pricing
- Adjust pricing process if required
- Build new pricing tools (e.g. pricing dashboard) in order to monitor the implementation

Qualifications:
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Professional experience
- Have a minimum of 10 years of professional experience
- Have a broad experience in pricing optimization for mid-size companies, either as pricing manager in a company or as a consultant
- Have specific experience in service pricing and software pricing
- Have excellent analytical skills and a keen eye for details

Interpersonal skills
- Have good interpersonal skills and be able to work hand in hand with the company organization at all levels
- Have good communication skills
- Be action oriented, with a strong focus on realizing the value creation potential

English and French fluency is mandatory.

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