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Price Management & Optimization
Whether your company is a high tech OEM, semiconductor company, component manufacturer or software company, you face a number of business challenges that impact profits.
High tech companies have very short product lifecycles, constant product introductions, end-of-life decisions, and rapidly declining costs, prices, and margins. In addition, there is constant margin pressure on technology companies due to increased competition from low-cost manufacturers. These companies have complex sales channels that comprise direct selling, resellers, distributors and retailers – this creates the potential for gray market issues and a resulting lack of pricing transparency and margin loss.
High technology companies need to effectively manage the price erosion curve as products move through their short lifecycles. Companies need to set better guidance for the sales force as well as ensure pricing consistency across the channel.
The Vendavo Enterprise Pricing Suite helps technology companies effectively address these business challenges and drive higher margins. Leading high technology companies such as Dell, Freescale, Lenovo, Nortel and Qualcomm, among others, have selected the Vendavo Enterprise Pricing Suite to help them drive higher profits.
Revenue Management and EITF 08-1 Compliance
EITF 08-1 has been approved. Starting June 15, 2010, high tech companies that sell bundled solutions must significantly change their revenue recognition procedures. Companies are now required to determine Best Estimated Selling Price (BESP) and Third Party Evidence (TPE) for bundled products and services. They must also reflect relative value across elements in a multi-element transaction.
ERP systems haven’t caught up to the latest regulations, forcing companies towards manual processes and Excel-based approaches to address these requirements. These solutions are inadequate, resulting in several business challenges:
- Time consuming and error-prone processes
- Extremely resource intensive process (evidence preparation, audit, and monitoring)
- Expensive data collection process w/high IT involvement
- Anxiety about ensuring ongoing compliance
Vendavo addresses complex EITF 08-1 requirements with comprehensive capabilities to help ensure compliance and minimize business risk.
Using Vendavo, companies can comply with EITF 08-1 regulations by providing evidence (or lack thereof) of Vendor Specific Objective Evidence (VSOE), capture TPE and provide a formal process to establish BESP in the market.
With pre-built analytic dashboards, pre-defined alerts, and sophisticated reporting capabilities, Vendavo supports the complete EITF process with rapid deployment, low total cost of ownership and limited IT involvement.
Download our datasheet and learn more about how Vendavo EITF solution can help you.
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