Another Way to Use the Price Waterfall Framework

By Derrick Herbst
March 11, 2014

While most folks know that the price waterfall is a best practice to analyze/monitor and manage B2B pricing, it can also be utilized in an algorithm-based approach to quickly identify profit improvement opportunities by using your existing transaction data.  Considering that most companies have 3-5 elements that are typically negotiated/variable in a deal/quote, variation in one or several of those elements can lead to significant variation in margin across the 1,000’s of deals a company executes.  Understanding the specific instances of variation is a very powerful way to enable specific actions to increase profits.  Watch the short video below for an outline of this approach.

  • algorithms , B2B pricing best practices , chalk talk , price waterfall , Vendavo Profit Advisor

    Derrick Herbst

    Derrick has over 25 years of experience in pricing management in various sales, marketing, strategic planning and consulting roles in large B2B enterprises. Derrick has been with Vendavo since 2005, initially in the Business Consulting group where he worked with prospects to understand their pricing requirements/needs and how the Vendavo solution can address/meet those needs. In this group, he also developed solution proposals and performed related demonstrations, developed business cases and worked with customers in the Requirements process to transfer the learnings of the sales cycle to the implementation team.  Derrick moved to the National Account Executive role in early 2010 and has successfully led several sales engagements by leveraging his knowledge of pricing and the Vendavo solution. Prior to Vendavo, Derrick worked for Dow Chemical for 12+ years in various field sales, marketing and strategic planning roles.