How do you align pricing with other functions and stakeholders?

1 Understand your pricing objectives and strategy

Before you set or change your prices, you need to have a clear idea of what you want to achieve with your pricing and how it fits with your overall marketing strategy. For example, do you want to maximize revenue, profit, market share, customer loyalty, or brand image? How does your pricing position you in relation to your competitors and your target market segments? How does your pricing reflect your value proposition and differentiation? Having a clear pricing objective and strategy will help you communicate and justify your pricing decisions to other functions and stakeholders, as well as measure and evaluate your pricing performance.

2 Collaborate with your product and merchandising teams

Your product and merchandising teams are responsible for developing, sourcing, and displaying your products, and they have a direct impact on your pricing decisions. You need to collaborate with them to understand the costs, features, benefits, and demand of your products, as well as the optimal assortment, inventory, and display strategies. You also need to provide them with feedback and insights on how your pricing affects customer behavior, satisfaction, and loyalty. By working closely with your product and merchandising teams, you can ensure that your pricing is aligned with your product value, quality, availability, and presentation.

3 Coordinate with your sales and marketing teams

Your sales and marketing teams are responsible for promoting, selling, and delivering your products to your customers, and they have a direct influence on your pricing decisions. You need to coordinate with them to understand the market conditions, customer preferences, competitive actions, and promotional opportunities that affect your pricing. You also need to inform them of your pricing policies, changes, and rationale, as well as train them on how to communicate and negotiate your prices effectively. By coordinating with your sales and marketing teams, you can ensure that your pricing is aligned with your market positioning, customer expectations, competitive advantage, and promotional activities.

4 Engage with your finance and legal teams

Your finance and legal teams are responsible for ensuring that your pricing decisions are compliant, ethical, and profitable, and they have a direct authority on your pricing decisions. You need to engage with them to understand the financial implications, legal regulations, and ethical standards that affect your pricing. You also need to provide them with data and evidence on how your pricing supports your business goals, budget, and cash flow. By engaging with your finance and legal teams, you can ensure that your pricing is aligned with your financial performance, legal compliance, and ethical reputation.

5 Listen to your customers and stakeholders

Your customers and stakeholders are the ultimate judges of your pricing decisions, as they determine whether your prices are fair, acceptable, and attractive. You need to listen to them to understand their needs, wants, perceptions, and feedback on your pricing. You also need to respond to them by adjusting your pricing accordingly, explaining your pricing value, and offering incentives and discounts when appropriate. By listening to your customers and stakeholders, you can ensure that your pricing is aligned with your customer satisfaction, loyalty, and advocacy.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?