Margin2 helps clients improve pricing performance using frameworks like the Pricing Journey model, which describes six competency areas for delivering pricing improvements, and the Pricing Toolbox, which outlines different tools for business-to-business and business-to-consumer pricing strategies and tactics.

1. Price
and
Margin
Management
An
Introduc9on
to
Margin2
Copyright
Margin2
2010

2. What
is
Margin2?
• Price
management
could
be
the
best
way
to
improve
your
organisa9on’s
performance.
It
has
been
demonstrated
to
deliver
60%
higher
profit
margins
than
other
type
of
business
improvement
ini9a9ve*.
• Margin2
is
a
highly
entrepreneurial
and
innova9ve
pricing
management
and
advice
service
that
can
help
your
business
deliver
sales
volume
and
profit
margin
growth.
• We
have
a
deep
insight
into
the
influences
and
dynamics
of
price
based
on
research
conducted
in
partnership
with
Brunel
Business
School.
• Margin2
delivers
client
projects
in
3
phases;
•
Assess
–
Understand
the
issues
and
opportuni9es
with
current
pricing
performance.
•
Equip
–
Create
strategic
insights
and
iden9fy
the
right
tools
to
apply.
•
Deliver
–
Run
analysis
and
make
recommenda9ons
for
change.
Copyright
Margin2
2010,
Source:
Phillips
2005

3. Assessment
-­‐
The
Pricing
Journey
High
Pricing
Stage
4
Pricing
m
2
Order
Control
The
Pricing
Journey
describes
how
m
2
Stage
3
organisa9ons
can
deliver
improvements
in
their
approach
to
pricing.
Management
Control
Its
based
on
6
competency
areas;
m
2
Stage
2
Stage
5
•
Responsibility
•
Performance
Management
m
2
Pricing
Pricing
•
Visibility
of
Results
Discipline
Delega7on
•
Customer
Knowledge
•
Change
Culture
Stage
6
•
Process
and
Systems
Capability
m m
2
Stage
1
2
Pricing
Pricing
Chaos
Empowerment
Low
Customer
Insight
High
Copyright
Margin2
2010

4. Equipment
and
Delivery
-­‐
The
Pricing
Toolbox
Business
to
Business
Business
to
Consumer
Price
waterfalls
Price
waterfalls
Price
sales
performance
matrix
Price
sales
performance
matrix
Pricing
Variance
trees
Variance
trees
Strategy
Conjoint
analysis
Conjoint
analysis
Assortment
driven
margin
evalua9on
Margin
management
Margin
management
Pricing
Price
change
evalua9on
Price
change
evalua9on
Tac9cs
Quo9ng
assessment
Assortment
driven
margin
evalua9on
Copyright
Margin2
2010

5. Price
Management
can
deliver
more
to
bocom
line
performance
than
any
other
improvement
ini9a9ve.
Copyright
Margin2
2010