Paul Barnhurst asks what FP&A brings to pricing beyond cost numbers. Top teams spot patterns from past launches: demand elasticity, which customer segments bit at which prices. Combined with marketing's data, that becomes the input for pricing research.
What should FP&A be bringing beyond just— I think sometimes we're guilty of, okay, here's the cost and we don't bring any other information. What are other things you think best FP&A teams are bringing to that pricing discussion?
Patterns. So yes, this is the cost, but if we have any historical pricing patterns from similar products that we've launched, love to see patterns at the different levels. What was demand elasticity? Who took it? Who did not take it? Can we marry those with customer segments that marketing might have? Which customer segments were more likely to buy at what price? There's a cross-collaboration, cross-functional conversation that's happening, but at at a very high level, would love to see patterns coming from FP&A that we can then use to feed into the new research we do around what the steep price should be.
Trust and Leadership Lessons for FP&A From 100+ Top Leaders with CFO Jon Laudie
