Seven keys for improving the profitability of customer contracts
White Paper
More than 80% of business to business (B2B) transactions are conducted through negotiated
contracts, a large number of them involving a long term relationship between the trading parties.
These contracts are becoming the standard way of doing business in many industries. This
white paper presents seven keys for improving the pricing of these contracts:
- Calculate incremental costs
- Assess business potential
- Micro-segment by value
- Measure price sensitivity
- Monitor competitive prices
- Rationalize the pricing process
- Adopt the right company infrastructure and organization.
A new generation of pricing systems can assist pricing analysts and sales executives in
systematically applying these seven steps and negotiating more profitable contracts with customers
and distributors.