LOS ANGELES, April 27, 2005 (PRIMEZONE) -- The Los Angeles chapter of Financial Executives International (FEI) held its monthly meeting Thursday, April 21, at the Jonathan Club in downtown Los Angeles. This month's meeting featured a presentation by distinguished speaker Lisa S. Thompson, vice president of the Strategic Pricing Group, Inc. The presentation was titled "Don't Just Set Prices, Manage Them Strategically" and addressed many pricing issues facing companies from a CFO's perspective. The key point of the discussion was that many companies erroneously believe that something is wrong with the price of their products or services simply because some customers tell them that their price is too high. Included in the presentation were several options for senior executives to use to better understand their customers' businesses and how to price their deliverables accordingly, maximizing profits.
"I really enjoy speaking to groups such as this, due to the level of interaction and overall expertise," said Lisa Thompson. "They are an extremely knowledgeable and highly experienced group of professionals. I enjoyed meeting with them very much."
Strategic Pricing Group's consulting strategy focuses on five levels of pricing strategy: value creation, value communication, price structure, pricing process, and finally on price itself. Each level provides an opportunity for companies to differentiate themselves:
-- Value Creation: Companies should design offerings based on a
deep understanding of the economic value provided to customers;
-- Value Communication: Companies can differentiate themselves
by communicating their value with selling tools and value-based
sales negotiations;
-- Price Structure: Companies build price integrity through the
use of fences and metrics that align with value;
-- Pricing Process: Companies succeed when they establish
policies and procedures to eliminate inconsistent discounting
that undercuts their value proposition;
-- Price: For best results, prices should be set to align with
value and encourage desirable behavior on the part of customers.
Ms. Thompson gave several specific suggestions for FEI members to take back to their organizations, including tools for developing a better understanding of their customers' businesses, as well as their own. Central to her presentation were several real-world examples of how these initiatives have been implemented in various industries, with great success.
FEI's Professional Development Program, a monthly event designed to further develop the skills and experience of senior-level executives, was held immediately prior to the regular dinner meeting and also featured a presentation by Ms. Thompson. The earlier presentation, entitled, "How to Leverage Your Company's Scarce Resources and Grow Profits" covered various company issues regarding profitability and resource allocation, specifically focusing on understanding customer needs and aligning resources to meet those needs in the most profitable manner possible.
The Los Angeles chapter of FEI will hold its annual Spring Social on May 14 at the Windows restaurant in downtown LA, after which will begin the organization's summer hiatus. FEI will resume its monthly meeting schedule beginning September 15, 2005. Interested parties should visit the organization's Web site at http://www.fei.org/chapter/LA for more information.
About FEI
Founded in 1931, Financial Executives International is a professional association for senior level financial executives, representing 15,000 individuals. Headquartered in Florham Park, N.J. with offices in Washington, D.C., the organization is comprised of 86 chapters across the United States and Canada and nine technical committees.
The organization's mission is to provide leadership on emerging issues concerning the financial community, personal and professional development, advocacy services and peer networking opportunities for chief financial officers, vice presidents of finance, controllers, treasurers, tax executives, and finance and accounting professors in academia. Other typical titles held by FEI members include assistant controller, subsidiary chief financial officer or controller, assistant treasurer and director of tax.
The LA chapter of FEI currently has approximately 400 members who represent a full array of industries including defense, entertainment, financial services, manufacturing, insurance and technology.
About Strategic Pricing Group
For over 17 years, Strategic Pricing Group has been the leader in developing proactive, value-based, and profit-driven business strategies. A recognized expert in markets ranging from pure commodities to highly differentiated offerings, SPG provides a complete range of strategy and implementation support. SPG is differentiated in its collaborative work-style and its focus on educating clients to become self-sufficient pricing leaders. CEO and Founder Dr. Thomas Nagle is author of The Strategy and Tactics of Pricing, the best-selling guide to pricing for over a decade. For more information visit SPG's website at www.strategicpricinggroup.com