Pricing strategy and execution: an overlooked way to increase revenues and profits

Purpose – This article advocates putting pricing strategy on the CEO's agenda and considers the new concept of pricing execution – the development of pricing strategy and the implementation of the strategy through a combination of leadership, management practice, and software – from the point of view of the senior management team. Design/methodology/approach – New software tools give companies a new way of setting, optimizing, and enforcing pricing changes within the organization. Findings – There has been an explosion of applications in the pricing management space. Pricing execution offers both growing and mature companies a lower‐risk approach to revenue, margin, profit, and shareholder‐value growth than innovation and acquisitions. Research limitations/implications – A proprietary 2005 Deloitte study of the available applications concludes that no one vendor offers a complete integrated solution. Practical implications – Using software to improve pricing measurement, combined with better pricing execution, can help many organizations generate revenue rapidly. Originality/value – CEOs and other leaders can use the article to educate the senior management team on the opportunity that pricing management represents.