Atenga’s Groundbreaking CEO Survey Shows Large Profitable Companies Look at Pricing; Others Don’t

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Atenga, the leaders in price optimization, conducted their first quarterly Pulse of the CEO survey in February 2007, which focused on capturing the concerns and issues that influence an executive’s decisions regarding their company’s profitability.

Our Pulse survey conclusively shows that larger and more profitable companies consider prize optimization as an important factor. However, what’s surprising is that the smaller and less profitable companies practically ignore pricing altogether.

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Atenga (http://www.atenga.com), the leaders in price optimization, conducted their first quarterly Pulse of the CEO survey in February 2007, which focused on capturing the concerns and issues that influence an executive’s decisions regarding their company’s profitability. The Pulse of the CEO was distributed to an unprecedented 21,000 chief executives nationwide from all industries and business sizes, from Fortune 500 companies to sole proprietors. The surprising results were as follows:

Sales Volume is the Biggest Concern for Businesses

  • More than 60% of the CEO’s who responded believe that increasing sales volume is their biggest problem and their most important process for improving their company’s profitability.
  • 62% of unprofitable companies believe that increasing sales volume is the most important factor in their success.

Large Companies Focus on Expansion and Pricing as Top Priorities

  • 42% of CEO’s from large companies see geographic expansion as their largest opportunity to increase profits, while 33% feel that optimizing their pricing is their greatest opportunity for profit growth.

Small Businesses Rely Heavily on New Products for Improved Profits

  • 52% of small companies and only 19% of large companies think that new products/services are the best way to improve profits.

Small Businesses Have Much to Learn about Pricing

  • Only 10% of small companies and 6% of unprofitable companies saw pricing as an opportunity to improve business results.

“Focusing a company’s entire resources on sales volume increase isn’t the only way to gain profitability,” says Per Sjofors, Atenga’s Founder and Managing Partner. “Our Pulse survey conclusively shows that larger and more profitable companies consider prize optimization as an important factor. However, what’s surprising is that the smaller and less profitable companies practically ignore pricing altogether.”

There is no one solution to profitability. The three main variables that affect the profitability of a company are sales volume, price and costs, and according to this new survey, not all CEO’s of large companies think that increasing the sales volume is the best way to improve their profits.

“It’s highly unlikely that 60% of U.S. businesses will be able to increase their sales volume as much or as fast as their CEO wants,” continues Sjofors. “In order to seek maximum profits, revenue and growth, CEO’s need to pay more attention to cost and pricing. A simple 1% or 2% change in price realization can produce enormous changes in profitability, sometimes even doubling the company’s profits.”

About Atenga, Inc.

Atenga, Inc. (http://www.atenga.com) is the nation’s leading price consultancy providing services to commercial and industrial firms worldwide. The company’s mission is to improve clients’ profits by optimizing prices and improving price realization techniques. They provide a full range of services that enable its clients to leverage their customers’ perception of value in their marketplace. Atenga is a privately-held company headquartered in Woodland Hills, CA.

Atenga, Atenga, Inc, http://www.atenga.com, Six Steps to Higher Profits, Perception Audit, Perception Benchmark, Optimized Price Assessment, OPA, Pocket Audit and Pulse of the CEO are trademarks of Atenga, Inc.

*Please note: For access to the full survey report, please contact Ali at (818) 349-3600.

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Ali Palmos
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