Insight

How to maintain sales and pricing discipline in a downturn

When the economy slows, top companies resist the temptation to get sales at any cost—and use the time to build commercial capabilities to excel in the recovery.

Serena Crivellaro

Serena Crivellaro

Managing Director, Strategy, KPMG US

+1 212-954-7468

Sudipto Banerjee

Sudipto Banerjee

Principal, Pricing & Commercial Excellence Leader, KPMG US

+1-404-907-6173

Many companies see slowdowns as periods of retrenchment, but our experience suggests that this may be a critical time for building commercial capabilities and systems. As we have seen, it takes more skill, data, and sophisticated tools to manage pricing and discounting in a downturn than when the orders are pouring in.

New insights, monitoring, value measurement and governance models can help companies make sales decisions. A dedicated team in a “war room” can help focus the organization's resources on high-quality deals and investing in only the best customers.

A recession also can be a good time to invest in people and technology for making smarter pricing decisions. One upside of a slow period is having the time to take stock of what’s working, and deploy idle resources to roll out better tools and processes to help teams be more efficient, setting the stage for accelerated growth during the recovery.

How to maintain sales and pricing discipline in a downturn
We urge companies to maintain commercial discipline and build capabilities to excel in the recovery.