Meet Past Participant: Arpana Brahmbhatt
Booth: What were some of the challenges you were facing in your work at Cummins that led you to the Pricing: Strategy and Tactics course at Chicago Booth?
Brahmbhatt: We were following a cost plus pricing methodology and did not have a pricing optimization focus driven by customer willingness to pay. Customer price increase conversations were often one-sided discussions with customers asking for more discounts. We were also going through some organizational changes, and so it was an opportune time to get advice on setting up a pricing function.
Booth: In what ways did the program help you meet those specific challenges?
Brahmbhatt: The program was very helpful in not only influencing customer perceived value of our products, but it also helped with tips on how to work with internal stakeholders in sales, marketing, and finance to get support for price optimization efforts. It provided good a framework for using value-based model to set prices.
Booth: What value was there for you in attending this course and being surrounded by professionals from industries other than your own?
Brahmbhatt: The cross pollination of different industries provided insights into opportunities and challenges which were broadly applicable. The different perspectives made discussions insightful, and allowed me to think more broadly about the topic.
Booth: What are two or three key concepts that you were able to take away from the course that you think you’ll find valuable for the remainder of your career?
Brahmbhatt: The topics related to relevant cost to consider for pricing decisions, importance of value communication, and segmented pricing model were most valuable to me.
Booth: What surprised you most about the Pricing: Strategy and Tactics course?
Brahmbhatt: The biggest surprise for me was how prevalent some of the pricing challenges were in various industries, and the internal momentum that needs to be created for any pricing ideas to be successful.
Booth: Of all the faculty members you had in the program, who did you learn the most from, and what did he or she teach you?
Brahmbhatt: I enjoyed the discussions led by Georg Müller. The frameworks he discussed to communicate economic value in light of competition were very interesting. Segmented pricing model based on customer choice was a very innovative way to retain margins where perceived value is high while also catering to the price shopper.
Booth: The course covers a variety of topics, including better understanding the psychology behind pricing from a corporate standpoint. What did you learn about that subject specifically that you didn’t know before?
Brahmbhatt: Value communication is not the only tool to influence customer’s perceived value or reference point, but price-framing tactics like 0.99 can make a big difference.
Booth: Why should others consider enrolling in the Pricing: Strategy and Tactics course?
Brahmbhatt: Spending a week on pricing which is key to driving sales and profitability can allow for the much-needed reflection to identify opportunities. This course equipped me with the concepts, frameworks, and real industry examples that allowed me to drive some quick wins that resulted in sustainable incremental profits for us.