So far, we’ve gone through the first two D’s in Intellaprice’s Five D’s of Pricing, debunk and define. With introductory lingo established, it’s time to determine direction for your organization. Think of direction as the road map for your pricing initiatives. Without it, it’s not clear where you’re going. If you have a step-by-step plan, it will simplify the road ahead.
This D is about answering the who, what, and when, though not in that order. Here’s a guide:
- What: specify key tasks in a complete pricing process. Detailing the key components such as research, analysis, meetings, and the like is crucial.
- Who: what are the roles within your pricing process? Who is a champion, a manager, and who are allies and stakeholders? Once you designate them, identify how they contribute to the process. Once you do this, key accountabilities for pricing will be clear and this is extremely beneficial.
- When: It may take a while to ramp up to the ideal timing and frequency that your company needs, and it’s important to walk before you run. How often will you evaluate pricing? What are the key times of year for this? It’s typical to back into the answers based on dates for menu revisions and/or key meetings to give enough lead time for research, analysis, and communication. You can always tweak the schedule later based on your early experience.
Like the other D’s, you can customize direction and tailor it to your company. Identifying the direction for pricing will help you greatly as you navigate towards your objectives.