Gross Margin Improvement

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MCG can help your business significantly improve the margin on your products through our formalized GMI process. This process trains you to better evaluate the marketplace and price your product accordingly.  It also trains your sales force to think and act like business owners as opposed to employees. 

Most companies develop standardized pricing for their products and apply that pricing in all sales situations. Unfortunately, by doing this, companies can lock themselves out of the marketplace or, in many situations, leave money on the table because pricing is too low. The right price for a product is determined by a multitude of factors – many of them dynamic. The current competitive environment and marketplace situation are two. But perhaps most important is gaining the insight to understand what your customer is willing to pay for your product.  You must sell value, not price.

Looking to grow your company through higher gross margins and a more effective pricing strategy? MCG will help you do it successfully.

• Determine the actual cost of your product as opposed to a cost based upon old standards, values or overhead pools
• Properly evaluate the marketplace and price your product accordingly
• Formalize a written pricing profile with information used for the completion of a detailed sales and marketing plan 
• Identify and separate actual versus perceived product costs
• Develop strategies for future pricing and hard cost estimation
• Implement margin improvement strategies for declining products

With more than twenty years of successful experience in product development, sales planning and pricing strategies, MCG knows how to optimize the gross margin on products for greater financial reward. With a focus on the defense and heavy equipment industries, we have helped companies develop successful pricing tactics that are marketplace driven. This has lead to higher profits, both for an individual product and for an entire company.