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CONSULTING SERVICES -COST AND REVENUE MANAGEMENT Pricing Strategy & Profitability Analysis 💲📊

"Design effective pricing strategies to improve margins and competitiveness. Analyze profitability for informed decision-making."

At TCC-India Consulting, our Pricing Strategy & Profitability Analysis service transforms pricing from an art into a precise, data-driven science. We combine deep market intelligence with granular internal cost data—leveraged from your core systems like SAP, Oracle, Tally, Busy, and Microsoft Dynamics 365—to define and execute an optimal pricing architecture. We enable you to understand true product/customer profitability, set defensible prices based on customer value, and deploy dynamic pricing strategies that dramatically boost your bottom line and sustain competitive advantage.

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About Our Services

WHAT IS Pricing Strategy & Profitability Analysis?

Pricing Strategy & Profitability Analysis is the specialized discipline focused on determining the optimal price points for products and services while rigorously analyzing the economic value delivered to the customer and the actual costs incurred by the business. It is the critical link between corporate strategy and financial performance.

This discipline integrates three core elements to maximize financial performance:

Element	Core Focus	Key Business Outcome
Pricing Strategy	Determining the pricing method (e.g., value-based, competitive, dynamic) and structure (e.g., tiered, subscription) to optimize price realization.	Maximized revenue and margin at the overall portfolio level.
Profitability Analysis	Applying sophisticated cost accounting methods such as Activity-Based Costing (ABC) to calculate the true cost-to-serve by product, segment, or customer.	Accurate visibility into net profit after all direct and indirect costs.
Price Execution	Designing governance models, tools, and sales processes to consistently enforce pricing strategy across all sales channels.	Elimination of revenue leakage and improved sales discipline.

Our Expertise

OUR SERVICES – Pricing Strategy & Profitability Analysis

TCC-India offers comprehensive, integrated services that ensure your prices are strategic and your profit insights are granular and actionable:

Activity-Based Costing (ABC) Model Implementation

Developing and integrating ABC models to accurately calculate the full, loaded cost-to-serve for every product, service, and customer segment.

Value-Based Pricing Strategy

Researching customer willingness-to-pay and quantifying the economic value of your offering versus competitors to define premium pricing ceilings.

Price Segmentation & Optimization

Designing multi-tiered pricing architectures by customer segment, channel, geography, and volume to capture maximum revenue across all market groups.

Promotional and Discounting Strategy

Analyzing the true financial impact of promotions and implementing structured discount policies to prevent revenue leakage and protect margins.

Profitability Reporting System Setup

Integrating cost and revenue data to build dynamic dashboards with real-time visibility into product and customer profitability, typically using Power BI with SAP or Dynamics 365.

Pricing Governance & Execution

Defining clear pricing decision rights and implementing sales pricing tools to ensure consistent execution and disciplined price realization.

Benefits of Pricing Strategy & Profitability Analysis

A strategically optimized pricing model is the fastest and most sustainable way to drive profitable growth.

2% to 7% EBITDA Improvement

A well-executed pricing increase flows almost entirely to the bottom line, delivering significant and measurable improvements in EBITDA.

Accurate Investment Decisions

Activity-Based Costing (ABC) provides clear visibility into true profitability, enabling confident allocation of capital and sales effort to the most profitable products and customers.

Elimination of Revenue Leakage

Structured discounting and automated price enforcement within ERP and CRM systems prevent margin erosion caused by ad-hoc deals and uncontrolled pricing.

Superior Market Segmentation

Strategic pricing architecture captures maximum value from each customer segment, increasing revenue without alienating core or long-term customers.

Improved Sales Force Effectiveness

Clear pricing guidelines, approved discount corridors, and integrated sales tools enable faster deal closure while consistently protecting margins.

Detailed Features – Pricing Strategy & Profitability Analysis

Our execution is highly technical, utilizing advanced financial modeling and direct integration with your enterprise transactional data.

Marginal & Full Cost Calculation

Developing precise costing models to calculate variable marginal cost for tactical pricing decisions and fully absorbed Activity-Based Cost (ABC) for long-term pricing, using detailed GL and material costing data from SAP or Microsoft Dynamics 365.

Price Waterfall Analysis

Conducting rigorous analysis of discounts, rebates, allowances, freight, and hidden costs between list price and net realized price to identify and eliminate all sources of revenue leakage.

Willingness-to-Pay (WTP) Analysis

Applying advanced market research techniques such as Conjoint Analysis and Van Westendorp models to scientifically determine customer price sensitivity and optimal pricing thresholds for key features.

Pricing Logic & ERP/CRM Integration

Configuring pricing rules, approval workflows, and tiered pricing logic directly within ERP and CRM platforms (Microsoft Dynamics 365) to ensure automated and consistent execution by sales and order management teams.

Profitability Cube & BI Dashboards

Designing interactive BI dashboards that provide real-time visibility into profitability across Product, Customer, Channel, and Region using granular data integrated from Tally, Busy, and ERP systems.

Competitive Price Benchmarking

Implementing continuous competitive pricing benchmarks to track market movements and immediately assess the impact of competitor actions on demand, margins, and overall profitability.

CHALLENGES WITH SOLUTIONS

We anticipate and solve the primary roadblocks to effective pricing—data chaos, organizational friction, and market resistance.

Inaccurate Cost-to-Serve Data

ABC Model Integration: Implementing a robust Activity-Based Costing (ABC) model that accurately captures all overhead and indirect costs, linking financial data from Tally, Busy, or ERP systems to operational activities for true cost visibility.

Sales Force Resistance to Price Increases

Value-Selling Enablement & Training: Equipping sales teams with Willingness-to-Pay (WTP) insights and tools to demonstrate the economic value of products/services, shifting conversations from price negotiation to value delivery.

Pricing is Too Reactive/Ad-hoc

Pricing Governance & Technology Deployment: Establishing a formal Pricing Committee with defined decision rights and deploying integrated pricing management software to ensure strategic, controlled, and consistent price adjustments.

Product Proliferation Masks Unprofitable Items

Profitability Rationalization Analysis: Conducting deep-dive analyses of the long tail of products and customer segments to identify those eroding value, guiding targeted product retirement or price correction actions.

No Visibility into Price Realization

Price Waterfall Analysis Implementation: Deploying automated, detailed reporting that tracks price erosion across every transaction and pinpoints exact sources of revenue leakage for corrective measures.

Pricing Strategy & Profitability Analysis