What actually is RGM? Before we describe the success factors of Revenue Growth Management (RGM) we have to clear up a few misunderstandings: RGM is not the same as NRM (Net Revenue Management). NRM aims to optimise a company’s net
Over the years, non-performing conditions grow and widen the gap between gross and net-net prices. Less and less of the price increases end up in the net-net price or one has to start with astronomical price increases. The high conditions
What actually is RGM? Before we describe the success factors of Revenue Growth Management (RGM) we have to clear up a few misunderstandings: RGM is not the same as NRM (Net Revenue Management). NRM aims to optimise a company’s net revenue by taking into account the combination of selling prices, discounts and other cost factors to maximise profit. NRM is also not to be equated with a staff position for price management, controlling or net-net and contribution margin optimisation. Thus,
Over the years, non-performing conditions grow and widen the gap between gross and net-net prices. Less and less of the price increases end up in the net-net price or one has to start with astronomical price increases. The high conditions develop a leverage effect that leaves hardly any room for investments in real sales drivers. For many decades, the international branded goods industry has practised a regular cleaning up of calculations and calls this “folding”. The list prices are lowered,
