Pricing strategy: the new weapon every CFO should seize

Why price is the number one profitability lever, and how CFOs can take charge of it.

Did you know that price is the biggest profitability lever a company has? Yet many companies too often overlook it when launching a product. That's why Christophe Bispo founded Holistrat, a pricing strategy consultancy whose promise is to help companies create value and optimize their performance. 

"The single most important decision in evaluating a business is pricing power," billionaire businessman Warren Buffett once said.  "When I founded Holistrat, I reconnected with old childhood memories. I remember games of chess after school. You had to take several parameters into account and work out several scenarios. To me, that's what pricing is: stepping back and taking a holistic approach to apply the right strategy that will make a company take off," recalls Christophe Bispo, founder and CEO of Holistrat. 

In practical terms, what is pricing? "Price is not an isolated decision factor. Take the launch of a new perfume. Let's say you decide to set its price at 50 euros. That creates a certain level of demand, sales volume and production. Then you decide to raise the price to 100 euros. You will lose your customers. Why? Because your customers are now convinced the perfume is worth 50 euros. Beyond the financial loss this kind of move causes, you also risk damaging your image and credibility with your target audiences. If you enter the market with a low-cost or mid-range positioning, it will be very hard to move upmarket, because changing your image and the perceived value of your product will be very difficult," the consultant explains. 

The wrong positioning therefore has not only direct financial consequences, but also an impact on your company's perceived value. That's why it is essential to set a consistent price from the start, in line with the strategy you want to pursue.

Why pricing also affects the CFO

As a business leader or CFO, you can see how important it is for a company to work with a pricing strategy specialist, whether freelance or in-house. 

"A pricing expert builds bridges between the different managers, whether that's the marketing director, the sales director or the CFO," Christophe Bispo continues. 

"The finance department isn't always able to communicate clearly with other departments or speak the same language, because it is very numbers-driven and anticipates the future based on algorithms, while sales reacts to market sentiment. So the finance department may impose things on a company that can have major consequences for sales. Pricing is the bridge between finance and sales, because I work holistically. If you need to find 10%, you have to know where to find it."

The expert puts it very aptly: "Pricing is closely tied to three functions: marketing, sales and finance. It is often managed within one of these three departments, although more and more companies see the value of creating a dedicated pricing team. It builds bridges between these departments and makes this cross-functional work run smoothly and precisely. By applying strategy and pricing to any company, you go from a tune full of off-key notes to true musical harmony. Holistrat's mission is to create value for your company and increase its profitability through pricing and strategy."

A pricing enthusiast with human values

Behind this new consultancy, Holistrat, is Christophe Bispo, a people-focused professional with a passion for winning markets and pricing strategy. 

In 2004, after a science-track high school diploma, the entrepreneur began his career in sales at companies across various industries and of different sizes. "It gave me first-hand experience of the challenges on the ground. I rounded off this first career in 2015 with an MBA in international business, before moving into analytical roles, particularly in pricing," he says. He then put his skills to work for major industry names such as Lexmark, Dassault Systèmes, John Deere, ZF Aftermarket and Karl Storz, as well as Les Mousquetaires and Autodistribution.

Christophe then realized how much he was drawn to entrepreneurship and strategy, and strengthened that background in 2021 with a program in business strategy and financial performance (INSEAD), before founding Holistrat in 2022.

"I trained myself in pricing, more or less self-taught, and started to realize I was very good at it. Since then, I've been helping companies define the best pricing strategy and create value for their business." 

Christophe Bispo wants to expand the range of services in Holistrat's offering, for example: supporting companies in their decision-making through financial analysis, coaching, and guidance toward CSR and responsible pricing.

And if you still haven't grasped the heart of his mission, he sums it up with a quote from the great Stoic philosopher Seneca: "If one does not know to which port one is sailing, no wind is favorable." 

Discover the services Holistrat offers on their website. 

Optimize your profitability with Holistrat 🚀

Poorly managed selling prices can have serious consequences.

Don't miss out on a sound pricing strategy: call on an expert, Christophe Bispo.