SPG helps clients realize significant profit improvement (on the order of 10%-30% in product lines) by using a combination of three guiding principles, worked in concert across all of its engagements:

• Be Proactive – Manage your customers' price perceptions and influence the marketplace proactively rather than simply reacting to customers or competitive moves.
• Manage to Value – Value is not determined by what customers are willing to pay; rather, what customers are willing to pay should be determined by your value.
• Focus on Profits – Use total profit as the primary driver in managing pricing decisions rather than basing decisions on volume or market share growth.

While most companies use these principles to a degree, our experience tells us that many don't appreciate the planning and cross-functional coordination required to sustain superior profit and growth. The result is that most companies leave significant profit dollars on the table.

Once we really understood our value to our customers, we got 20%+ price increases from 2 of our 5 largest accounts…with other customers, we nearly doubled the length of our contracts.