7Sages Pricing Corporate Introduction: Unlocking Profitability Through Strategic Pricing with Cutting-Edge Pricing Solutions

sball7 44 views 14 slides Mar 06, 2025
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About This Presentation

Welcome to 7Sages Pricing, a premier global consultancy dedicated to transforming revenue management and pricing strategies for businesses across B2B industries.

A practitioner led organisations with hundreds of years experience, our expertise lies in optimizing pricing frameworks, implementing ad...


Slide Content

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Improving Profitability & Enterprise Value
Through All Aspects of Pricing

7 Sages Pricing
Pricing is the most important lever to drive Profitability
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Pricing offers the best
potential to drive EBITDA
➢A 1% change in price
typically equates to a
10% to 12% EBITDA change
➢The same volume
change delivers a 2% to
3% EBITDA change
•Pricing is the most important lever to increase enterprise value
•Optimized pricing is a continuous improvement process and a journey rather than a destination
Fixed Cost
Volume
Variable Cost
Price
2-3%
2-4%
6-8%
10-12%
Improvement in Profitability for 1% improvement in:
60% of manufacturers see margin
leakage as the key pricing challenge
– 2024 Manufacturers Pricing Report

7 Sages Pricing
7Sages Pricing is a global pricing consulting firm
Company established 25 years ago with over 800 project engagements
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Atlanta
Mumbai
London
Global Presence
Global HQ- London
Americas HQ- Phoenix
Tech Centre - Chennai
01
Over 100 years' experience
within the leadership team in
price and revenue
management consulting
02
Over 800 workshops and
customer engagements
across different sectors and
sizes.
03
Minimum Margin
Improvement
from 5-10%
04
Return on Consulting
Investment averaging
20x plus
05
Contributed over 2.5
billion of incremental
revenue to clients
06
Senior partners with
practitioner experience on
every project
07
Hands-on customized
approach working with
Senior Executives and
Managers
08
History of our clients coming
back for additional pricing
guidance
09
Ability to manage
pricing software
solutions into client
enterprise
10
7Sages Helps Improve All Aspects of
Pricing and Profitability Management
Phoenix
Mexico City
Dubai

7 Sages Pricing
Our mission is to help clients generate shareholder value and margin through better
pricing, value and revenue management.
We generate incremental value and profitability for our clients through strategy, process and tools.
The Price Improvement Program will generate upto 10% ROS. We assess maturity, develop &
implement pricing and value strategies, methodology and process.
Our biggest strength is that our consultants are experienced pricing and marketing
practitioners from industry, so have lived and breathed the challenges and pressures that
clients face everyday.
We don’t just provide advice and calculate hypothetical potentials; we are with you through the
business lifecycle and take care of the implementation and training, change management, and
nurture to deliver the promised ROI.
7Sages Pricing - What do We Do?

7 Sages Pricing
The 7Sages price maturity pyramid
Route to the top is through continuous improvement of strategy, process & software
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Weak Alignment of Tactical Pricing
Across Functions & Customers
01 Stage 1 35% of companies
customer pricing/ flexible prices
•Maturity driven by process, people/ organization, software/ tools and data/ analytics
•7Sages helps through this journey from lower levels of pricing maturity towards the highest
Margin Change
+300bp
+500bps
+750bps
+1000bps
05
04
03
02
01
Historical Products & Customer Analysis
02 Stage 2 35%-40% of companies
customer pricing alignment
Primary Research / Competitive Intelligence
03 Stage 3 <20% of companies
value driven process
Analytical Tools Price / Revenue Optimization
04 Stage 4 <10% of companies
optimizing pricing process
Strategic Pricing Alignment
05 Stage 5 : <1% of companies:
integrated execution
Reactive
•Excel
•Disparate data
•No visibility
•No structure
Controlled
•Centralize pricing
•Create rules & values
•Discount structure 0.25%-0.5%
Guided
•Extended pricing rules
•Quoting in CRM
•Inline analytics
•Workflow enabled
0.5%-1%
Engineered
•Segmentation
•Competitive
ranges
•Advanced price
setting
1%-3%
Cognitive
•Target pricing
•Advanced segmentation
1%-5%
The Path to full-potential is
the Value-Based Pricing Journey
50% companies use Excel to manage
pricing and 10% use dedicated software
– 2024 Manufacturers Pricing Report

7 Sages Pricing
Guiding through the journey to pricing excellence
We provide best in class end-to-end consulting across all aspects of pricing
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Powerful expertise and world leading software to deliver a
complete pricing solution to realize improved margins
➢Pricing and value
enablement
➢Market research
➢Analytics & Data Science
➢Change Management
Education & Training
➢The correct tool for the
problem
➢Off the shelf
➢Bespoke
➢Experienced pricing and
marketing experts with
strong market
knowledge
➢Experienced software
developers
➢Change Management
Core Consulting Tools / Software Implementation

7 Sages Pricing
Output
Time
Activity
End-to-end Price Improvement Program
Typical engagements may include just one or many phases
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Internal Hypothesis /
Performance Diagnostic
Qualitative and quantitative
research to understand the
status quo
•Maturity assessment & gap
analysis to best in class pricing
and value management
•Data review to assess
readiness for pricing software
•Value mapping
•ROI from an investment in
pricing software
Quantitative research to
understand the customer, their
willingness to pay and how they
make decisions
•Detailed pricing and value
strategies / processes review
and improvement plan
•Customer segmentation, 3
rd

party research
•Revised operational processes
and governance
•Pricing structures
•Software use cases
A production ready pricing
system integrated with ERP and
CRM implementing the pricing
action plan identified. Phased
roll-out.
Implementation of the output
from Phase 2
•New pricing methodologies
•New pricing structures
•New segmentation approach
•Process documentation and
embedded disciplines
Long term support &
maintenance and extended
team training, program
management, change
management
We become your extended team,
and we embed the new things
from Phase 3 into the business.
Change management, focusing
on the incremental steps to
generate business as usual from
the new software tools
4 weeks
Deep evaluation of the internal
hypothesis. Review value
strategy, tools and processes.
Benchmark what good looks like
& estimate value add potential
Create strategies and processes
to help optimise revenue,
generate incremental value and
margins.
Implementation of the pricing
strategies / process in pricing
software
Post implementation support,
expansion of implementation to
other regions/BUs; fixing issues in
existing implementation
Typical 5% to 10% margin improvement annually
Pricing, Value and
Product Marketing Strategy
Software Implementation Value Realization / Nurture
3 - 4 months
Less Than 6 months
for MVP go-live
Ongoing
Phase 1 Phase 2 Phase 3 Phase 4

7 Sages Pricing
The 7Sages continuous profitability improvement cycle
Pricing optimization is a journey rather than a destination
Price Management
•Creating the pricing function with the
process, teams, objectives, & tools
•Implementation of tools including
pricing software to improve efficiency
•Training sales and other functions on
good pricing practices
•Achieve a tangible value from pricing
7Sages has 25 years of
experience managing this
cycle across over 800
engagements with
customers of different sizes,
sectors and geographies
Price Setting
•Translate organisation strategy into
pricing objectives
•Price structure including list price,
discounts, rebates, promotions, etc.
•Advanced value-based pricing
methodologies
Measure, Analyse
and Feedback
•Qualitative and quantitative
techniques to measure price
performance
•Mix of Internal (historic/ transaction)
and external (market and customer
related) data
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7 Sages Pricing
7Sages core service offering
•Price sensitivity
•Customer value
perception
•Competitor price
comparison
•Market due diligence
studies
•Customer preference
assessment
•Discrete choice and
conjoint modelling
•Revenue channel creation
•Launch and post launch
support
•Channel partner
discounting
•Key account pricing
•Global pricing integration
•Price controls and metrics
•Competitive pricing
•Market entry/ defense
strategy
•Behavioral segmentation
•Value mapping
•Product affinity modelling
•Reporting design and
analysis
•Churn analysis
•Customer lifetime value
analysis
•Up-sell and cross-sell
modelling
•Pricing Software
•Corporate training (in-
house)
•Off-site workshops
•Keynote conference
engagements
For a comprehensive list of services please visit www.7sagespricing.com
Market Research Pricing Strategy
Pricing Analytics
and Tools
Education/
Training
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7 Sages Pricing
Our Experienced Practitioners hold more than 100+ years of
experience in pricing strategy
Venkat
Vaidyanathan
Founder and CEO
Stuart Ball
Founder and COO
Carlos de León
Pricing Consultant Latin
America
20 years of pricing strategy
implementation and execution
across sectors and geographies
25 years of Strategic Marketing
and Pricing specializing in B2b
industrial, packaging, Medical
device and distribution sectors
20 years ofpricing strategy across
diverse sectors such as retail,
FMCG and automotive
Shahul Nath
Head of Servitization
Strategy
Hiba El Khoury
Director of consulting,
Middle East and Africa
10+ years of experience in
corporate strategy, servitization,
and automotive industry
15+ years of experience in strategy,
data analytics, and consulting
across Energy, Chemicals, and Oil
& Gas
Steve Wilkins
Managing Director-
USA
30+ years of pricing strategy /
execution across B2B marking
including, Manufacturing,
Distribution, Med Devices,
Automotive, Oil/Gas

7 Sages Pricing
Pricing diagnostic – Utilizing 7Sages’s pricing scorecard
How do we get to Level 5 of the pricing maturity pyramid?
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This is often the beginning of our pricing management work with a new client
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Assess all relevant aspects of the current
processes
2
Gains alignment internally to the opportunities
that exist
3
Separates the ”low-hanging-fruit” opportunities
from those that are more difficult to capture
4
Quantifies the financial opportunity for making
pricing improvements
5
Establishes a vision and the steps for achieving
best-in-class pricing management processes
Serves several important purposes

7 Sages Pricing
Price-Value Mapping
This will be done from an internal perspective provided data is available
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Perceived price
Customer-Perceived value/ benefits
Value
disadvantaged
Value
advantaged
A
B
C
D
Estimating customer perceived value
•Identify key value drivers driving customer buying decision
and assign weights according to importance
•Identify key competing solutions in the market segment
•Score on a scale of 1-10 each of the value drivers for each
of the competing solution
•Multiply these scores with weights to get a final total score
Techniques to estimate value drivers and scores
•Form an internal hypothesis through interviews and
workshops with key stakeholders with best understanding
of the market/product
Applications
•Product price positioning and changes based on
overarching product strategy (skim/gain market share,
etc.)
•Understand value drivers and perceived value of solution
vs. competitors
•Creation of value-selling tool with clear understanding of
customer benefits and competition strengths and
weaknesses
Requirement from Client
•Identify a team who have product and market knowledge
•Prep work – identify key value drivers, key competitors and
how client compares to competition across key value
drivers

7 Sages Pricing
Economic Value Estimation (EVE)
Considering the Internal Hypothesis and Value Proposition
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Identify Value Drivers
•Identify both positive and negative factors that impact
a customer’s value
•Positive drivers include factors that increase value,
reduce cost, reduce risk
Determine the Reference Value - comparison to competitor
•Determine the price for the next best alternative product
or service
Set The Price
•Identify the total value that the offering generates when
considering the positive and negative elements of the vs.
the next best alternative
•Determine the negotiation guidance and how much of the
incremental value generated you receive, and how much
the customer receives
Calculate differential value
•For every value driver identify the benefit the customer
receives from your offer
•For every element where the competitor is better, identify
the value of the weakness
•This should be validated through external research that
estimates value in the eyes of the customer

7 Sages Pricing
Selected Client References
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