PROS, European Pricing Platform
Reveals Pricing Profit Potential
Uncovers Opportunities to Drive
Top- and Bottom-line Objectives with Pricing Maturity
HOUSTON and BRUSSELS, June 22, 2016 – PROS® (NYSE: PRO), the revenue and profit realization company, together with the European Pricing Platform (EPP), today announced survey results that highlight opportunities to improve pricing performance and help organizations meet their top- and bottom-line objectives. Conducted by the EPP and sponsored by PROS, the survey illuminates current and target pricing maturity levels of more than 200 European companies across six key areas: pricing strategy, policy, implementation, reporting, organization and systems.
The survey connects pricing maturity with organizational expertise in executing profit-oriented strategies. A full 81% of the respondents reported they operate with a lack of pricing maturity, indicating less than 20% realized the power of pricing and its ability to improve profitability.
"This survey showcases how organizations can tap into the power of pricing to realize their profit potential," said PROS Chief Marketing Officer Patrick Schneidau. "The survey is especially noteworthy despite some of the wide differences in how companies perceive their own pricing maturity today. Companies that accelerate their pricing maturity progress can succeed in today’s hypercompetitive global macroeconomic environment, and we are encouraged to learn that more than half of the European respondents plan to further their pricing maturity over the next year."
"The EPP survey highlights the state of pricing maturity today and the risks of inaction," said EPP President Pol Vanaerde. "It also offers change management recommendations for pricing initiatives, so companies can successfully use pricing to close the gap between their existing and expected revenue and profit growth. By adopting the survey’s pricing insights, companies can make substantial progress in driving revenue and profits with mature pricing skills."
The results offer greater insight into how companies view their pricing maturity levels today and also provide suggestions for improvement:
- Among companies surveyed, a full 55% believe pricing maturity is a competitive advantage and are creating action plans over the next year to develop the necessary skills.
- While 70% of organizations indicate their pricing and sales teams work together to determine price guidance, less than 10% use a cross-functional approach with marketing, sales and finance to achieve pricing maturity.
- Fewer than 5% of the European respondents employ advanced pricing practices, which highlights a strategic opportunity for companies to use pricing as a profitability lever.
- Today 65% of participants allow unconditional discounts, a clear indicator that these organizations are missing opportunities to improve margins.
During a recent webinar, the EPP, PROS and Simon-Kucher & Partners shared additional survey results and offered insights on how increasing a company’s pricing maturity helps realize greater revenue and profitability. To listen to the replay and download the presentation slides, visit the website.
To learn more about PROS, visit the website or follow PROS on Twitter at @PROS_Inc.
PROS Holdings, Inc. (NYSE: PRO) is a revenue and profit realization company that helps B2B and B2C customers realize their potential through the blend of simplicity and data science. PROS offers cloud solutions to help accelerate sales, formulate winning pricing strategies and align product, demand and availability. PROS revenue and profit realization solutions are designed to allow customers to experience meaningful revenue growth, sustained profitability and modernized business processes. To learn more, visit pros.com.
This press release contains forward-looking statements, including statements about the functionality and benefits of revenue and profit realization software to organizations generally as well as the functionality and benefits of PROS software products. The forward-looking statements contained in this press release are based upon PROS historical experience with revenue and profit realization software and its current expectations of the benefits of revenue and profit realization software for organizations that implement and utilize such software. Factors that could cause actual results to differ materially from those described herein include the addressability of an organization’s revenue and profit realization software needs, the risks associated with PROS developing and enhancing products with the functionality necessary to deliver the stated results and the risks associated with the complex implementation and maintenance of revenue and profit realization software such as PROS software products. Additional information relating to the uncertainty affecting the PROS business is contained in PROS filings with the Securities and Exchange Commission. These forward-looking statements represent PROS expectations as of the date of this press release. Subsequent events may cause these expectations to change, and PROS disclaims any obligations to update or alter these forward-looking statements in the future whether as a result of new information, future events or otherwise.
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There is no substitute for experience! And Michael is indeed a very experienced market access specialist with a career spanning market access and pricing strategy consultancy, global and UK affiliate-level pharma market access leadership roles and as a senior payer in hospital pharmacy and healthcare executive roles.So the 6th EPP Life Sciences Pricing forum in Montreux is just the right occasion to invite Michael as the moderator for the forum.
“A good moderator helps to make the best connections - connecting the speakers and their topics with the audience and their expectations. In addition to being responsible for housekeeping, timekeeping and helping maintain the energy of the conference from the first presentation to the last, as the moderator it’s my responsibility to make sure that key themes and issues get picked up on, and that the questions that everyone is thinking about actually get asked and, more importantly, answered!”
And Michael has been able to follow the pricing maturity journey of these companies over the years.
“Looking back, since 2004 I think that life sciences companies across the board have matured significantly in their pricing capabilities, growing the ‘capable capacities’ of their pricing functions and raising their recognised value to their companies as they play vital roles in helping to address the constantly increasing pressures and demands of the different types of healthcare systems. I think EPP continues to play an important role in supporting this maturation of pricing across Life Sciences.”
When asked about challenges and opportunities in the Life Sciences companies, Michael adds the following:
“The Life Sciences industry faces an increasingly strenuous mix of challenges, from the demands of patient consumerism and the growing expectations of healthcare systems for it to deliver ever greater value and ‘more for less’, through the growing sophistication and complexity of the various payer systems, to the challenges of markets becoming increasingly interconnected, through price referencing and HTA networks.”
Can a forum like the EPP Life Sciences Pricing Forum contribute to realising these challenges?
“To help meet these challenges, the industry needs to be as well informed as possible, and with its high quality presentations and discussions on the most topical issues, together with a valuable opportunity to consider these issues with key leaders from the industry, the EPP forum helps greatly in this respect.”
And this is what Michael wishes for all attendees when they return back to their organisation!
“The best outcome would be for each and every participant to leave the forum with a few ‘golden nuggets’ to help them and their companies develop their pricing capabilities in the future - be they a solution to their problems, an idea to develop, a new development to learn more about, a better ways of doing something, or a valuable new contact who can help them to succeed.”
Want to learn about the topics to be discussed on the 6th EPP Life Sciences Pricing Forum, check the programme here.
Les Echos published an article on this new survey. Read the article here!
How is the survey conducted?
The survey consists of 9 steps and a 'get your report' module. You will be guided through questions on Demographics, Pricing Strategy, Price Policy and Price Setting, Systems and Tools, Organisation and Implementation.
The 2015 EPP Global Pricing Maturity Survey represents the opinion of 200 pricing executives from the manufacturing industry, surveyed by means of the online Pricing Maturity Indicator survey on www.pricingmaturity.eu.
Survey duration: October 15th – Nov 30th 2015
Why should you fill it in?
The questionnaire of the Pricing Maturity Indicator is designed to objectively determine the organizational pricing maturity level, by evaluating the actual performance across the pricing framework building blocks :
• Price Strategy
• Price Policy
• Price Implementation
• Price Reporting
• Pricing Organization
Do the survey and found out where your organization is on the pricing maturity journey and set your priorities right for the next 12 months.
What were the top 5 conclusions from our yearly Life Sciences Executive Briefing?In preparation of the EPP Life Sciences Pricing forum, the Executive Briefing is a yearly ‘invitation-only’ executive meeting that aims to build a dialogue between CxO’s and industry pricing experts on emerging pricing and commercial topics in the Life Sciences Industry. It was recently organised in Zurich on March 31, 2016.
The European Pricing Platform – together with its partner Alliance Life Sciences – focus on bringing together a very exclusive and high level group of professionals from this industry. This discussion platform for no more than 30 of these top professionals in the business creates a one-of-a-kind learning and networking experience. In short, some hours of thought provoking debate and global best practice at your fingertips.
We have bundled the summaries of the presentations and wrote down the conclusions of the meeting in this document. You can consult the document here.
These are our top 5 learnings:
- The life sciences industry is a complex adaptive system that is subject to the same evolutionary forces as the natural world.
- Current selection pressures require the industry to adapt to six simultaneous shifts in the business environment.
- The current focus on launch sequencing to mitigate the impact of external reference pricing does not lead to profit optimisation, successful customer engagement or a sustainable business model. It should be ethically responsible, not denying or unduly delaying access to innovative drugs in low-priced markets.
- The challenge of contracting is not to secure reimbursement through discounts, but to obtain volume commitments and drive usage.
- Manufacturers must be willing to walk away from wealthy markets that refuse to make a fair contribution to R&D cost.
Want to know more about the 6th EPP Life Sciences Pricing Forum, click here!