Pricing in Investment Portfolios
Pricing in Investment Portfolios
Pricing can improve the value of an investment portfolio considerably. Often companies leave money on the table due to sub-optimal pricing, and by applying a series of pricing initiatives to each of the portfolio companies, the overall grows immensely. Initiatives an investor can apply include:
- Conduct price research during an exploratory phase or during due diligence. Identify customer segments that are willing to pay (considerably) more than today and apply these insights once investment is in place.
- Use price research together with the management team to understand where you can charge more, either in existing markets or when launching in new markets
- Train the growth companies' sales teams in how to negotiate better prices
- Identify new sales segments that are willing to pay premium prices
- Apply internal processes and control systems to ensure pricing discipline, especially in expansion companies where maybe unit growth otherwise wins over profit focus.
- Use pricing and repositioning as part of turn-around in struggling portfolio companies
- Gain pricing insights through research that puts you in a better position with a potential acquirer at exit time
Many of the above initiatives also can work well if you are a startup CEO or involved in corporate M&A. Pricing can be a very strong profit driver in most investments. Get in touch with us to see how we can help your company: Contact us