2. SPMG Pricing Pyramid “Hierarchy of Needs”
Pricing is the most powerful strategic weapon for profit optimization, yet many
companies fail to use it effectively. In our most recent poll conducted amongst
executives from Fortune 500 corporations, less than 1% of companies have achieved
pricing excellence. Yes! only 1%. Jaw dropping, as it sounds, there is a silver lining
here; it’s a 50% improvement from 3 years ago when the poll was first conducted.
Stage 5
<1% of Companies
Integrated Execution
Stage 4
<10% of Companies
Optimizing Pricing Process
Stage 3
20% of Companies
Custom Pricing Alignment
Stage 2
35-40% of Companies
Customer Pricing Alignment
Stage 1
30% of Companies
Pricing Czars, flexible prices
Strategic Pricing Management Group is a global price consulting firm with expertise in
Moving organizations from Stage 1 up to Stage 5. SPMG has 15 years of pricing
expertise completing more than 300 engagements worldwide.
3. Who We Are
Over 25 years of combined consultative experience through innovation, research and
hands-on management have positioned the consultants at Strategic Pricing
Management Group (SPMG) at the cutting edge of value-based pricing & revenue
strategies. The firm is staffed by experienced pricing management consultants who
focus on varying attributes that challenge top and bottom line. As a result, SPMG is
recognized for its ability to design pricing questionnaires, conduct the necessary
research and develop pricing strategies & tactics that will allow companies to meet
their goals and objectives.
SPMG and its partners have the ability to conduct linguistic, cultural and health
literacy appropriate research in the areas of women’s health (maternal, breast and
cervical cancer, diabetes, etc). We have conducted numerous studies across North
America, Europe, Asia, and South America
We have assisted clients from a diverse range of industries with their strategic &
tactical pricing, revenue and segmentation issues. However, health care (pharma and
devices) has represented our largest single industry focus. The firm’s main services
are strategic pricing and marketing strategy, pricing research and education.
Each assignment is carefully managed using proven customized methodologies and
techniques to meet specific client needs.
SPMG possesses the necessary pricing tools to evaluate the success or limitations of
our clients’ strategic & tactical pricing efforts in order to determine whether value is
being created or destroyed. From the outset, we work with our clients to plan,
develop clear action plans intended to help them meet their corporate goals and
objectives. This process includes flushing out key issues vis-à-vis the customer,
defining a clear set of objectives, clarifying expectations, determining deliverables
and setting boundaries for the flexibility to evolve these as required.
4. Why SPMG Team
1. Deep understanding of Financial Services, technology and Developing Value-
Based Pricing Strategies & Tactics
2. Specialization in competitive and value based pricing, specifically for service
driven businesses
3. Specialization working with Boards, C-level and Executive Management to
develop clearly defined strategy to improve top line performance for sustainable,
profitable growth.
4. Access to like institutions and other leading industry pricing executives and
academics
5. Availability of, and expertise in, an array of specialized pricing tools which have
been tailored to highlight customer price sensitivity, decision selection criteria,
monadic testing and competitive gaming (e.g., conjoint analysis, price-driver
tradeoffs, price-driver scorecard construction, price metering and price-value
mapping)
6. Relevant experience in advisory roles and defining value based pricing value
propositions
7. Extensive and up-to-date familiarity with the some key regulatory issues
8. Network of strong industry contacts
9. Understanding of current industry structure & underlying dynamics
10. Understanding of pricing culture and decision-making environment across
functions & channels
11. Very Strong Action orientation
12. Senior management perspective
13. Practical strategy mindset & ‘Great Value for the Money’
6. Managing Partners
Michael Hurwich, M.B.A.
Michael has consulted to major firms for the past 15 years. He started his consulting career at
Braxton Associates, the strategic arm of Deloitte & Touché Consulting Group. During his consulting
career, Michael has developed numerous corporate and business unit pricing strategies for a broad
range of clients in a broad range of industries including telecommunications, finance and insurance,
logistics and distribution, pharmaceuticals, retail and not-for-profits. Michael has written numerous
articles on pricing and marketing strategies including, “Pricing in Turbulent Times”, “Pricing for
Speed: A Pharmaceutical Case”, and “Pricing for New Drugs” He is also a frequent lecturer in China,
India, Singapore, Dubai, Malaysia, Mexico , the United States, and Canada.
Some of Michael’s clients and past engagements include, Sanofi Pasteur, Novartis, Promega, Lily,
Roche Diagnostics, GSK, Boston Scientific , too name a few.
Michael has an M.B.A. in Corporate Finance & International Marketing from the Olin School of
Business, Babson College, Boston and an Honors BA, Managerial Economics/Marketing.
Alain Meloche, M.Sc., M.B.A.
Alain has over twenty years of experience advising executives on strategic issues. He began his
consulting career at Larson & Company, a strategic consulting boutique that was an offshoot of
McKinsey, later acquired by Mercer Consulting, where he also worked. He has developed strategies
for high technology companies in the pharmaceuticals, medical products, medical distribution,
software, internet, telecommunications, logistics, and financial services industries. A key element in
Alain’s consulting practice has been the development of pricing frameworks and the development of
applications and tools to permit the application of these frameworks at both the corporate and field
levels. His past clients have included Genentech, Roche Diagnostics, Kemin, chaindrugstore.net, GSK,
and McKesson.
In addition to an M.B.A. from the Harvard Business School, Alain also has an M.Sc. in Nuclear
Engineering and an Honors B.S. in theoretical physics.
7. Managing Partners
Loic Le Corre, MBA
Managing Partner, SPMG Europe
Prior to joining SPMG, Loic has had a distinguished career as a consultant and business owner. Over
the past 20 years he has created two businesses which have been sold to a leading Fortune 500
company. Loic was also Vice-President of strategic consulting for a major consulting firm. While
there he was located at the Washington, DC office for two years and took part in the creation of the
London, Geneva and Paris offices. More recently Loic acted as Managing Director for Pricing
Solutions Europe.
Loic has consulted for many leading companies, including Syngenta, Michelin, Natwest, Societe
Generale, Fortis, EDF, Danone, Orica, Groupama, ExxonMobil, Michelin, Bouygues, Danone,
Electrabel, Carrefour, LEGO, Noos, Nationwide, Energizer and Ford, among others. In addition to his
work with those companies, Loic has extensive experience in the Financial Services and Telecom
sectors. Loic also has a very deep knowledge of strategic marketing and in that capacity has done
extensive work on maximizing pricing and value propositions. Within the pricing and Value
Management realm Loic has developed specific expertise in new product launch, client value
modelling and in Pricing Capabilities Development Programs for Large Companies.
Loic graduated as an engineer from the Ecole Polytechnique in Paris and received an MBA from the
Wharton School (University of Pennsylvania).
SPMG Managing Partners & Global Team
Corporate Headquarters & Project Team
8. 1. Price Consulting
SPMG’s core consulting competency resides in 4 key areas;
Developing world class pricing processes, optimizing existing product
pricing in order to increase profits, assisting with the pricing of new
product launches and developing pricing strategies and tactics. Each of
the following services include a complimentary 1 hour consultation
and company assessment.
1. As-Needed Pricing Advice
2. Pricing Discovery / Data Mining Analysis
3. Price Discipline
4. Discount & Allowances
5. Dynamic Pricing / Revenue Optimization
6. New Product/Service Pricing
7. Scenario Planning
8. Pricing & The Sales Force
9. Pricing Process Implementation
9. SPMG Pricing Methodology
Value Based Pricing/ Overview of Consulting Approach
Changing a price is easy, but for your company price can help determine who are the right
customers for your product and whether the value of your product & service is supported by
your pricing structure?
Many companies base prices on tactical internal cost-plus considerations. Our methodology
below provides a value-based outside-in pricing approach towards strategic decision making
goals. Out methodology draws primarily from a strategic review of customers to determine
their perceived value of your products. Both the customer and competitive environment will
therefore drive your pricing rather than costing considerations.
SMPG will provide you with a detailed approach to systematically help your company
develop pricing strategies that are consistent with your corporate, marketing and sales
objectives. Our methodology is unique in that it allows for interim presentations to your
company in a systematic fashion by module to transfer knowledge for immediate pricing
adjustments.
Customer
Profiling &
Strategy Financial
Strategy Target & Focus Competitive Strategy
Development Landscape Perceived Value
Product Review & Advantages
Strategy
Pricing Methodology Alternatives
10. 2. Pricing Software/Tools
Developing price elasticity and negotiator tools for analysis and
revenue optimization. These user-friendly tools will help you evaluate
and make strategic pricing and tactical decisions for managing your
product, customer or sales force. There has been an increasingly
steady rise in Sales Force Effectiveness Tools. As such, one of our most
popular pricing tools has been the Sales Force Heat Map TM . This
tool is designed to assist sales teams with analysing performance
across different strategic business units, customer sets and regions for
maximizing revenue and profitability!
1. Pricing Analyzer Software
2. Price Developer Software
3. Customer e -Valuator Software
4. Dynamic Pricing Software
5. Price Elasticity Tool
6. Price Negotiator Tool
7. Sales Force Heat Map
11. 3. Pricing Education and Training
Our workshops are presented in more than 15 countries around the
world.
SPMG offers a variety of customized training formats designed to fit
your needs both in-house or off-site. We offer 3 types of workshops:
1. General workshops that present an overview of pricing
techniques and approaches.
2. Industry and company specific (in-house) workshops. These
are tailored to individual companies’ or industries issues and
cover pricing basics together with cases and exercises geared
to the particular situation.
3. Advanced pricing techniques workshops… such as advanced
quantitative analytics and pricing tools.
SPMG offers wide range of on-line Webinars; we are a partner and a
sponsor of Professional Pricing Society and European Pricing Platform.
12. 4. Market Research
We conduct historical (inside-looking out) and field research (outside-
looking in) of your market segments using advanced tools and
methodologies.
Quality products and services shouldn’t be priced in a vacuum. They
are the result of solid market intelligence and thorough input from
customers who have a vested interest in a company’s product or
service. As experts in pricing research, we set out to design a line of
research products & tools that truly reflect the needs of our clients.
Some key questions addressed by SPMG and some research tools we
have used include:
How could price affect demand? Our Price Targeter ™ approach is
useful for new offerings and variants of or improvements to
existing offerings.
What trade-offs do decision makers make between price and other
components of an offering?
How effective are the marketing & discount programs?
Visit our Market Research Page for details
13. Recent Case Studies
Type Of Engagement Client Example
Leading Provider of Regulatory & Compliance Tools to Financial Services
Industry: The principal objective of this project was to First introduce Value
Based Pricing Principals to Product Management in an effort to develop a
Introducing Value Based Pricing more effective pricing approach of measuring, creating and communicating
value in the Corporate and Financial Services Division.
into the Organization. Determining
the receptivity and price/value Secondly, developing an understanding of the key price/value drivers for
tradeoff of an existing and key customers based on an analysis of the price-value relationship for
various products and services. Evaluated clients performance on each
proposed new product by existing attribute, as well as those for competitors. Identify a directional
and non-customers. assessment of market price elasticity by market segment. Develop
information used to develop more effective pricing strategies.
Large Caribbean Financial Institution: Identified elasticity of demand of
Customer Research & product price various core attributes through Discrete Choice Study for existing & proposed
Elasticity Study products to retain & grow market share and revenue.
Major Pharmaceutical: Large Price elasticity study and revenue forecast
New Product Pricing Strategy across modeling that will help determine the elasticity of demand for a new
three Latin American Countries medication being launched in 2010 to women patients and respective
physicians.
Leading Yellow Page Directory: Developed strategic pricing and incentive
alternatives designed to improve net revenue performance through
Discount and Incentive Analysis discounting, refining or extending existing customer discount plans across Core
Metro Areas in key cities around the United States.
14. Recent Case Studies
Type Of Engagement Client Example
Leading manufacturer of gypsum wallboard. Developed a Pricing Strategy
that focused on customer value as a key driver of profitability rather than
Pricing Strategy Development price alone. Assisted the client in differentiating their offering to provide
superior customer value & improve their price position.
World’s largest manufacturer of air conditioning, heating, and
refrigeration equipment. Performed a Net Price Analysis for 3 selected
Net Price Analysis & Workshop distributors. Developed and administered a pricing workshop for distributors
so the client could deliver long-term value to its distributors & dealers.
Floor Covering Company. Canada’s leading national floor covering solutions
company for both commercial and residential flooring. The work sought to
Value-Based Pricing Analysis &
instill the principles of value-based pricing within the organization in order to
Workshop meet corporate goals and objectives of identifying opportunities to increase
incremental revenue.
One of North America’s largest manufacturer of residential Vinyl windows.
The work sought to explore and instill principles of value-based pricing
Value-Based Pricing and Customer across different customer and market segments e.g. Contractor, builder,
Segmentation Analysis distributor or dealer networks. The goal was to reduce pricing incentives
and provide pricing stability to the market.
Chemical Distributor: Examined net price (list price less discounts and
Net Price Analysis incentives) to identify and develop a strategy for alignment of over/under
discounted customers.
16. International Offices
North America
Canada – H.Q United States
Michael Hurwich, CEO & President Patrick J. Taylor, Partner
Alain Meloche , Vice-President ptaylor@youneedpricing.com
Zoltan Lorantffy, Director
Info@youneedpricing.com
Europe
Western Europe - UK Western Europe - France
Marios Michael Andreou, Partner Loic Le Corre, Managing Partner
mmandreou@youneedpricing.com llecorre@youneedpricing.com
Western Europe - Germany Central and Eastern Europe - Hungary
Heinz Otto , Partner Eniko Pongracz, Partner
holuehr@youneedpricing.com epongracz@youneedpricing.com
Asia
China -Hong Kong Indonesia - Tangerang
Edward Chan P, Eng, Partner Erwin Husin, Partner
echan@youneedpricing.com ehusin@youneedpricing.com
Latin-America
Brazil - Rio de Janeiro
Alex Carneiro, Partner
acarneiro@youneedpricing.com
