Pricing cmailto:nora.harme@capacent.fionsulting is often thought of the act of adjusting prices to a point of equilibrium where supply meets demand, which enables profit maximization. Simple, right?

Price_Quantity_Pic1 

Market price equilibrium – demand meets supply

Unfortunately, this is quite the theoretical approach, and although it withholds some truth to what is included in pricing optimization, it doesn’t take into consideration the multiple variables an organization actually experiences.

In reality, it is as important for an organization to improve their price getting capabilities (skills, tools, discount policies, IT systems, structures etc.) as it is to focus on actual price setting (pricing logic). Hinterhuber and Liozu (2012) identify three different levels for both the price setting capabilities as well as the price getting capabilities of a company. To be at the highest level of this matrix where a company has pricing power, both areas have to be in excellent condition.

 Price-Setting_Getting_Pic2

Pricing Power Matrix: Hinterhuber & Liozu, MIT Sloan Management Review, 2012

Having “Pricing Power” can be seen as the desired state and a measure of a company’s success. Investor and Berkshire Hathaway President Warren Buffet summarises the significance of pricing power as follows:

 The single most important decision in evaluating a business is pricing power. If you’ve got the power to raise prices without losing business to a competitor, you’ve got a very good business. And if you have to have a prayer session before raising the price by 10%, then you’ve got a terrible business – Warren Buffett

 

Start with current state analysis

As a starting point for our projects, we always conduct a pricing maturity analysis in order to identify a company’s current state in pricing. After a thorough analysis we focus on possible quick wins our customer can gain instantly as well as devise an actionable plan for achieving long-term strategic success. To get a deeper understanding of our way of working, you can explore our recent pricing project with Havator.

 

Our pricing professionals in Finland

Capacent Finland’s pricing team was established in January 2019 to answer the high demand for pricing expertise from our clients. As a team we hold over 20 years of experience in pricing and revenue management related projects.

 

Capacent_Nora Härme

+358 (0)40 041 62 15
nora.harme@capacent.fi

Nora Härme
Senior Manager & Pricing Lead

Nora joined Capacent in 2019 after 15+ years in revenue management, pricing and business development within passenger transportation. She has extensive experience from leading strategic pricing transformation projects and development of new services at airlines (Finnair) and railways (VR Group). Nora holds a master’s degree in International Business from the Helsinki School of Economics (2001). She is passionate about designing and implementing pricing strategies which benefit both companies and their customers.

Capacent_Elina Ojala

+358 (0)40 591 33 71
elina.ojala@capacent.fi

 

Elina Ojala

Manager

Elina joined Capacent in February 2019 and has previously worked in payments, logistics and pharma industries. She has solid knowledge on pricing, a background in controlling and holds a master’s degree in Economics from the Lappeenranta University of Technology. Her key interests include increasing customer profitability through price optimization and pricing process improvement.

Capacent_Petri Jormanainen

+358 (0)40 701 12 86
petri.jormanainen@capacent.fi

Petri Jormanainen

Manager

Petri started at Capacent’s Helsinki office already in 2011. Thereafter, he has gained experience in the Swedish consulting field working at Capacent’s Stockholm office. Before re-joining Capacent’s team in Helsinki Petri also worked in a business development role for one of Sweden’s largest provider of facility management services (Coor Group). Petri holds a master’s degree in Business Management from the University of Tampere. Petri’s professional interests lie in understanding customer value and developing pricing and sales accordingly.

Capacent_Pertti Palosuo

+358 (0)50 466 15 24
pertti.palosuo@capacent.fi

 

Pertti Palosuo

Senior Consultant

Pertti joined Capacent in 2018 and holds a master’s degree in Economics from Turku University. Prior to Capacent, Pertti co-founded a consumer goods company, worked in sales for a global software organization and gained extensive experience in digital marketing from working with various start-ups. Pertti is at his best when working on strategy projects that are backed up with thoroughly analysed numbers.

 

Capacent Pricing consulting

At Capacent, we have one common denominator in all our pricing projects – creating tangible results for our customers. The results derive from having a strong focus on implementation and working in close collaboration with our customers.

″  Typically, we aim to achieve 4-6% EBIT improvements in addition to enhancement and clarifications of current pricing structures and policies.

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