Interview: Processes and capabilities for value quantifiction

Over the past years, we at Hinterhuber & Partners have invested a very substantial amount of time and intellectual efort to develop state-of-the-art diagnostic instruments in pricing. We use rigorous pricing tools and checklists to analyze what we term the “3Cs”: customers, competitors, and the company itself. To understand customers we use the customer needs profler to gain relevant insights; to understand and map competitors we use the competitive advantage profler. To understand the client company we use the competitive advantage profler and our value quantifcation tool. We further assess company pricing capabilities via a scale, PRICECAP, that we’ve developed, and we map all processes that involve pricing decisions, typically the sales process in B2C and the ofer development process in B2B. We complement this with structured interviews with key executives in marketing, sales, and pricing; with interviews with customers and distributors; and with an analysis of company documents on proftability by product, sales rep, region, customer, and segment.