Chapter 3

Which Contexts Matter to You?

Con′-text, n. Parts that precede or follow … and fixits meaning.

Con-tex′-ture, n. Act, mode of weaving together; structure; fabric … composition.

—THE CONCISE OXFORD DICTIONARY (4TH EDITION)

Which contexts matter to your pricing? That question requires some careful analysis of your product and buyers, frequently resulting in some surprises.

One such surprise came from a supplier to Wall Street trading desks. That supplier’s sales team had been working hard to reach the “decision makers” directly and to avoid the buying organization. A survey of the sales force indicated that they ideally would present their offer to the head of trading and would work hard to avoid the vice president of purchasing. As it turned out though, this strategy was not ideal for achieving best price levels.