The Made in Group met up this month to discuss ‘Pricing Strategies’ in a discussion group chaired by Jason Pitt and attended by Phil Stanley, TWP Manufacturing; Seamus Bourke, Frost Electroplating; Steve Walker, Frederick Cooper and Ruth Edwards, Birmingham City University .
The business landscape is continually evolving, and adapting pricing strategies is becoming pivotal for companies navigating a more turbulent era. At the November Made in Group industry meet-up, a pivotal discussion revolved around the intricacies of pricing strategies, shedding light on the challenges and innovative solutions in this domain.
Amidst the upheavals of COVID-19, volatility in energy, material costs, and labour has prompted a significant shift in customer and supplier expectations. Members shared their experiences, acknowledging the challenges posed by negotiating frequent price increases and its strain on business relationships. This dilemma led many companies to explore alternative methods of pricing updates to provide transparency and stability for both customers and themselves.
A prevailing trend among companies, as highlighted during the meeting, involves adopting quarterly or monthly pricing updates, particularly in areas such as materials and energy. This shift aims to offer customers a transparent and structured pricing model while safeguarding business relationships from undue pressure.
The consensus among members gravitated towards the necessity of a clear and consistent pricing strategy adaptable to cost fluctuations. Transparency in communicating these constraints to customers allows for a mutual understanding, considering that customers also grapple with similar pressures, enabling them to plan and adjust accordingly.
Implementing technological solutions emerged as a key driver in managing pricing intricacies. Several members noted the transformative impact of introducing Material Requirements Planning (MRP) systems. These systems, by ensuring accuracy and transparency in cost assessment, enable more precise pricing, fostering efficiency and reliability in business operations.
Ruth Edwards of Birmingham City University underscored the strategic value of Knowledge Transfer Partnerships (KTP) for businesses. Leveraging innovation gained through KTP can aid in price differentiation and enhance competitiveness, offering a distinct edge in the market.
Phil Stanley of TWP Manufacturing shared insights into their successful integration of an eCommerce strategy, catapulting sales and venturing into higher-value markets. This shift not only empowered them to set competitive pricing but also boosted margins, exemplifying the transformative power of strategic business diversification.
The evolving landscape has squeezed various cost elements, including materials, energy, labour, and freight. Navigating these considerations has made the business environment more dynamic, pushing for agile pricing approaches that balance profitability with competitiveness.
Viewing this period as one of transformation, where efficient businesses may gain an edge over less adaptable counterparts, emerged as a pragmatic outlook. However, the balance between securing profitable projects and maintaining timely, profitable deliveries remains paramount for sustainable growth.
In conclusion, access to accurate and current information holds newfound importance. Businesses striving to thrive in this ever-evolving landscape must engage actively, understanding industry trends and their internal dynamics.
The Made in Group continues to organise a spectrum of events throughout the year, facilitating knowledge exchange and fostering a competitive edge. These events, ranging from online sessions to face-to-face meet-ups, feature industry experts and thematic discussions aimed at enhancing competitiveness and productivity.
For those eager to join our meetings and access these invaluable insights, simply log in to your dashboard and navigate to the events page. Not yet a member? Join us online by visiting www.madeinthemidlands.com/register or www.madeinyorkshire.com/register and become a part of a thriving community committed to fostering business excellence.