This article looks at the roles of each part of the organization in strategic pricing. Using a sports analogy, the author
refers to the Sales Function as the offense, the Operations Function as the defense, and the Purchasing Function as special
teams. IT, Finance, Credit and HR play support roles, enabling the team to be in a position to win. And management is the
coaching staff. Running a complex "play" like strategic pricing requires all functions to work in concert.
Much has already been written about the "science" of strategic pricing. I have written some of it, including Strategic
Pricing for Distributors, published by the NAW Institute earlier this year. I intended the book as a do-it-yourself explanation
of strategic pricing.
The magicians Penn & Teller famously perform a magic act that reveals the secrets of magic tricks. But even if you know
the secrets, learning how to execute those illusions requires skill and experience. And even if you understand the relatively
simple concepts behind strategic pricing, successful implementation is challenging work.