Pricing Process

A Pricing Process is a business process that defines pricing workflows, decision checkpoints, and approval mechanisms to establish product prices and service rates.

• AKA: Pricing Workflow, Price Setting Process, Pricing Methodology.
• Context:
  • It can typically define Pricing Steps from cost analysis to price publication.
  • It can typically establish Approval Hierarchys for pricing decisions.
  • It can typically incorporate Market Analysis into pricing determination.
  • It can typically utilize Pricing Systems for calculation execution.
  • It can typically produce Pricing Deliverables for stakeholder communication.
  • ...
  • It can often include Competitive Benchmarking for market positioning.
  • It can often enable Price Testing through pilot programs.
  • It can often support Revenue Optimization through iterative refinement.
  • It can often provide Audit Capabilitys for compliance tracking.
  • ...
  • It can range from being a Simple Pricing Process to being a Complex Pricing Process, depending on its workflow sophistication.
  • It can range from being a Centralized Pricing Process to being a Decentralized Pricing Process, depending on its decision authority.
  • It can range from being a Static Pricing Process to being a Dynamic Pricing Process, depending on its update frequency.
  • It can range from being a Cost-Based Pricing Process to being a Value-Based Pricing Process, depending on its pricing philosophy.
  • ...
  • It can be supported by Pricing Tools and pricing systems.
  • It can be documented in Process Management Systems.
  • It can be monitored through Business Intelligence Platforms.
  • It can be optimized using Process Mining Tools.
  • ...
• Examples:
  • Strategic Pricing Processes, such as:
    • New Product Pricing Process for product launches.
    • Price Adjustment Process for market responses.
    • Promotional Pricing Process for sales campaigns.
  • Operational Pricing Processes, such as:
    • Quote-to-Cash Process for sales execution.
    • Contract Pricing Process for negotiated deals.
    • Renewal Pricing Process for subscription management.
  • Industry-Specific Pricing Processes, such as:
    • Retail Pricing Process for merchandise pricing.
    • SaaS Pricing Process for subscription services.
    • Professional Services Pricing Process for consulting engagements.
  • ...
• Counter-Examples:
  • Pricing System, which executes pricing calculations rather than defines workflows.
  • Pricing Model, which specifies calculation methods rather than process steps.
  • Sales Process, which focuses on customer acquisition rather than price determination.
• See: Business Process, Pricing Management, Pricing System, Pricing Deliverable, Revenue Management Process, Workflow Management.

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