Your P&L Has You Blindfolded

p&l resultsMany companies take a common but risky approach to running their business. They make critical pricing decisions believing that it will have a positive impact on performance without any hard evidence.  In effect, they’re running a big experiment on their revenues and profits each time they set a price, and don’t really know the outcome until the end of the month or quarter.  By then it’s usually too late.

Look forward, not backward

When it comes right down to it, far too many companies treat their P&L merely as an after-the-fact accounting of financial performance, rather than a predictive tool to actively make their numbers going forward.  The first sign that you have something wrong in your pricing is when revenues and profits take a hit at the end of the period.  Is that really how you want to run the business?

The simplistic approach doesn’t work any more

The B2B world has become highly dynamic, with market demand fluctuating, different sets of customers responding differently to a price change, competitors making price moves of their own, and costs continuing to climb.  Companies are well aware of these effects, but they mistakenly believe that they can protect themselves against them through expert judgment, simple policies that seem good on the surface (match the competitor or pass though the costs uniformly), or sophisticated spreadsheets back at the corporate office.  In the end, these methods can’t keep up.

You can know the impact of prices before you change them

Some people think this is just the way it has to be.  But today, top companies around the world are using a powerful alternative called MarginMax.  Its breakthrough science gives these companies the ability to predict accurately the revenue and margin outcomes of every price action they’re considering before they ever put the first price into market.

Predictable P&L performance is now available

The advanced scenario planning capability within MarginMax accounts for all the important effects driving P&L results — cost changes, market price elasticity, fluctuating demand, competitor price actions, and their own profit and revenue objectives.  Companies are now able to know their P&L results before they happen.  Isn’t it time you joined them?

 

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