Hello. And thank you. All again for joining us for another episode of the professional pricing Society podcast, my name is Terrance and we have a very informative conversation today, with one of our PPS Euro, 22 conference speakers very special guest today, sidebar just in case you are not aware PPS is conducting, their 17th annual European and Global conference in Barcelona Spain. This upcoming December 7th
through the 9th. So if you still need to register, Stir. You can do that by visiting our website pricing Society.com /p P s-- Euro 22. Our speaker today is Larissa craft Pricing and profitability management pricing Center of Excellence. Set up rebate management, and ethical pricing this Larissa. How are you doing today? I'm doing really well. Thanks for having me Terrance. Good to be here. Good! Good. We're very excited to have you with us as well.
Today, now, we're going to go ahead and jump into our conversation thinking about pricing as a function. Where does this typically belong in an organization who was responsible for owning this? This particular aspect of pricing, As a function. Well, Terrence, if you look at the old classical marketing framework of for peace, what we
call it, right? So it is part of the marketing organization and the classical way, but things change very quickly and now I think pricing as a function has evolved over
time. So if pricing leaders must influence, the long-term results of a firm while, not impacting competitive advantage in the industry and if the pricing leaders communicate with all the external and internal stakeholders, and if And to make sure everyone is well, informed about the pricing and the strategy and what the pricing team is trying to do how it performs to support commercial teams and overall strategy of the firm, I believe, pricing for
me, as a standalone function, at the c-suite, level and lot. Lost in finance accounting, marketing or sales in the classical set up. So for me, pricings a standalone function, it does require a very unique set of skills. Skills and training and capability development. Sure, sure, absolutely. Now, you know, thinking about capability development, as you just mentioned training, continuous, learning, and the pricing world. Of course, all those things, all those components are very
crucial. But when does it stop? You have to kind of ask your ask yourself. The question. When does it ever kind of stop? Well, actually, you know, it's good to be part of the professional pricing Society conference in Barcelona this year. And that's really a confirmation that actually capability development training. Is learning in the pricing World, never stops because things are moving and, you know, always changing fast as the organization is maturing from cost.
Plus two Dynamic pricing servitization is a big topic. Now, in the pricing World pricing, folks must constantly, learn develop and grow. So what our pricing strategy Frameworks and roadmaps that should be developed by various pricing strategies. Ever you did couple years ago, it's not the same this year. Look, what's happening outside? You know, in the economy, inflation turmoil, Etc. So for me, that never never stops. So, can in-depth overview of these Concepts and guidelines be
provided. While assessing, you know, the bottom line impact of these initiatives in The Firm. It's one in a one-year is one strategy next year. You should be really, really Dry land, adopt another strategy. So hands, you have to work on your capability development training and continuous learning in the pricing World.
Another big question for the pricing, folks always can affirm sustained competitive Advantage by applying various pricing strategies pricing models and by creating and selling products with the improved pricing strategies that could sustain the economic profit long-term so.
And to answer those types of questions you need to To focus constantly on your capability development, training, continuous, learning, and hence, you always have to come to professional pricing society and work on your certification and keep your skill set and knowledge up-to-date fully agree with you. And as you mentioned, you know, capability development training, continuous learning. None of these components ever stop.
You know, it's an ongoing process just because pricing in itself is is continually changing and evolving with the with the Times. Now, when you speak about capabilities, what exactly are the key capabilities? You know? In order to be a very successful pricing leader in today's today's world. Well, for me, first and foremost is passion passion, and one more time, passion about pricing. Sure. Absolutely. Have to be passionate about
pricing. You either love it or you hate it. Yeah, once you love it, you stuck in it for the rest of your life. And another big thing that pricing family is a very small family, very focused because it's very unique, right? So all of the things that you need to do in pricing and how
you take it to the next level. So what are the key capabilities is just some of you you know, already know them but I would like to add couple additional ones because things are changing you know, price setting and price getting for me price getting its you know, for your commercial teams really do. Take your guidance from the price from folks and go out to the market and get that price, right? So for me, if you if you just what I call them, volume Junkies
you just go out there. Anybody can be a volume junk, you just go inside the volume, but when you start adding the value piece to it, wow, that it's really you're demonstrating your capabilities. As I said, you know, successful price getter yeah with the support of price Setter, you know, the pricing department, so price getting price setting. Very, very important. Ain't that something that I'm
working with a lot of folks. And you know what, I teach at the University's, another big thing is pricing process. So that's a very important capability because what I'm hearing more and more week processes are in place like of ownership. People don't really know where pricing process said, whether it's part of the sales process, whether it's part of the integrated business planning or either either is part of the order to cash. Process. So a lot of questions and then
there is no one, clear answer. So you really need to see, you know, what the industry is with product is what the services and really step back and say, okay, where am I pricing process sets in my organization. So, and again, in order to understand and own end-to-end process because there are so many silos and you losing value as you go from one side with to the other. So that capability of really owning and understanding the Rising process is very, very, very important. Yeah, sure.
Next thing their hands is very important is really how do you get all your stakeholders in organization to get the right level of decision support because he constantly you know, leaving money on the table. So and again it's all about the integrated approach agile approach really adjusting and really getting your decision support at the right level the right time. So then you You know, you maximize your value, the next big thing, what I hear?
And what I see, really dealing with various folks out there in the industries data data, hygiene pricing impact polluted, with other factors, you know? And so you know what, hands, you're not getting the right pricing decision. So, it's a very important capability data data, knowledge, data ownership, the data cleansing organization day-to-day. Dictionary. So, those are very important capabilities and you need, you know, constant development around that topic.
Another one Terrance that comes to mind is really lack of understanding of customer value drivers. You know you don't really sit down and take the time to map out all the key value drivers for your customers and clients and and it does require special capability to deal with that. The next one, I would like to talk About, you know, we are becoming digital. Everything is digital what it takes my 12 year old son to do in 5 minutes.
It takes me a couple hours to figure out dry to digital skill. Set is becoming more and more important in the present world. You know, the pricing software's, implementation, challenges, etc, etc. So digitization, digitalization in the pricing world is absolute must, and because things are changing. So, Quickly, two technologies are developing you continuously need to work on those capabilities and really Master it and take it to the next
level. A couple other things to note here, for our listeners sustainability is becoming a big Topic in the pricing world as well because what, we writing research around and, you know, a lot of surveys with the real companies we're trying to understand The consumers are really prepared to pay more for a sustainable product or service or less and how they really taking it within their firms.
And hence it's very important. The way pricing organization is said, in terms of, you know, organizational, Savvy how it is organized, how it is ingrained in their organization. And hence, you do need to understand this organizational ecosystem and hence, you need to get that capability of me. In the mapping your organizational ecosystem in your organization, you know, in the right way. So it's very important. Okay. Wow, that was a, that was a great amount of Jim's.
They're great amount of insightful pieces that kind of go into the capabilities of it, is of a successful pricing leader. Now, when you think about those capabilities, you know, data, hygiene being value-driven digitalization with those contribute to what you would consider to be the best form of a pricing organization. Absolutely. There are new forms of pricing organizations evolving. So that's what we see in reality, you know, running the research and working closely
with many organizations. So it's not anymore this, you know, old way of hierarchical approach or Central pricing, totally disconnected organization. So you really looking at, you know, integrated forms of pricing organizations. It's out there. And then it's really important to look at your organization and the form that should produce the most optimal pricing, conclusions, and results for the organization, right?
So during my workshop in Barcelona will be talking about real case study from a real company that I helped set up. The pricing Center of Excellence. What we call C Oe What is a see pricing? Co e. It's a center team in a central team of skilled employees that provide shared resources. Best practices expert Knowledge and Skills to make data processing easier while changing the skill set and capabilities.
It enables a digital way of working that contributes to long-term, growth and Value Vision of the company. So we will be talking this particular case. D. That had three teams within the Centre of Excellence for pricing one was this on the project management because we constantly looking at new technologies and pricing software's, right? So will you do need a very strong project management Drive in their organization?
And there are two types of project management that this particular company dealt with and pricing. One type of project management when you deal with the software implementation, that's, you know, gay To approach, right? So traffic lights and how you really going through different Gates on the project management and and how you value your process and progress. And then there is another project management that this particular company adopted, that
was the agile scrum methodology. And that's a two week, three week, quick wins, implementations right under the edge aisle approach. So it's a new thing out there and it works very well for the price. Racing team as well for various smaller types of projects, quick wins and quick reactions, right to what we need. So that's one team on the center of excellence. The second team is the process team, so that that team will be
dealing with. I was dealing for in this particular case, the real case study. So process team is really mapping out and to end the whole pricing process, where it sits. So really eliminating all the silos automating things. Along the line of this process where you have the repetitive tasks. We used our PA creation that robotic automation technology.
Right rpas, animation also chat Bots for certain things and the customers come in. So you don't have to really repetitively pick up the phone or answer, email whatever. So we also call chatbots, we set up throughout this team to improve the process and also some AI. II solutions that set in this team also to help the process be you know, more robust agile fast and the third team in the center of excellence for pricing that we set up was data and Reporting
team. So the data team is really creating the dictionary glossary rules for data cleansing management of the master data and then translate it into the reporting kpis link to the Pinot pricing. For etcetera. So there are new forms out
there. So it's very important to really step back and say, okay, he's our pricing organization, fitting fit for berga, no purpose for the future is a really sustainable and, and what do we need to do something different to get around that and we have a clear case study to go over it. Hmm. No good. Good good, yes. That that would be a solid solid evaluation of what the best form of a pricing. Ian is so thank you for clarifying that now let's switch gears a little bit.
Can you tell me what exactly is ethical pricing? And why exactly is it important to know about? Well today, you know, in today's world is you, you know, and everybody knows, you know, we're dealing with a lot of pressure on the results and the bottom line value creation inflation in a supply chain inventory challenges.
So, a lot of companies that leadership could, you know, fall into the really an ethical way of making the, you know, the decisions around what they're trying to do when they trying to achieve or to reach that goal. It's a lot of pressure, so it is human nature. And so we just need to make sure that we do not forget about ethical pricing aspect. We do things right? So we must get ahead of pricing FX. We must look at the you know
code of conduct. We must look at certified fair prices you know fair play privacy challenges, you know regulation governance because you can fall into really Falls, trap an ethical decision, You know, making a drive because, you know, you have a pressure from the top to get to certain Target here in these very difficult times, these days.
So, ethical pricing, there are two fold one, when you look at, you know, ethical decisions and ethical strategies in the very, very difficult conditions and the second thing when you add some Mission pricing, to your strap pricing strategy and we'll have a real cake. Study from a great company in Bangkok the deals with you know, High valued seeds for their
plantations, right? So and when this particular consultancy came in and did the work for them, you know, the girl recommendation was to come and increase prices at 20% well, because of this strategy and is ethical prices. Icing Mission pricing that this particular seeds company. Has the conclusion was to go and only increase pricing with the farmers that two percent versus what was recommended.
Right under the calculation 20% because of this ethical mission-driven pricing because the, you know, they believe in a very high value of seeds, you know, the quality of seeds and that relationship with the customers that are very important. Mordant. So and also the farmers. So this is the whole circle there. So we will go through the details of this real case study to understand what was behind
that particular decision, right? Going to present price increase and not 20 as recommended by the calculations. So it's really amazing. It's also, very important topic coming up more and more social sustainability, I am the Chief Human Rights. Officer the slave free trade.
We mapping out, it would complete supply chain of many, clients of ours to understand where they have, you know, slave labor along the line of their supply chain, where they have their child labor, how the human rights framework is positioned and how its translating into the pricing, right? So what are the consumers looking for?
So very important topic. And I also teach my students that As a fundamental science of pricing, never compromise your ethics, always make sure that you get ahead of your pricing effects in your daily lives and daily jobs. Okay, that was amazing. I appreciate your insightful knowledge about ethical pricing and just you know it kind of expounding on the best practices you know centered around B2B pricing Miss Larissa creates Copa, really appreciate your
time today. Thank you so much for being with us and just allowing us to be you know fed with your with your pricey knowledge and insightful information. Now if you don't mind, do you mind sharing with the listeners where they can find any more? More of your information that you may have any more of your resources anywhere. Well, I am on link it in so you can find me on LinkedIn.
So I have Publications and also other interesting postings that I have on pricing and also you know, check check us out and slave free trade and we just went live with a up chocolate customer in Scotland. That's the first chocolate producer that we mapped out. That has zero slave labor, you
know, in their supply chain. So in the cocoa farm that produces that raw material for this particular companies in Colombia. And so that's also quite interesting how it is, also impacting the pricing and things like that. So you can also see that in on our side, you know slavery trade and also in social media. Yeah. Okay, thank you so much. I really appreciate your time until next time. Bye bye.