Selecting a Suitable Pricing Baseline
The Hidden Costs of Cost-Plus Pricing
In his article “When Cost-Plus Pricing is a Good Idea” Utpal Dholakia, Professor of Marketing at Rice University’s Jesse H. Jones Graduate School of Business, makes a solid argument for why cost-plus pricing is a viable pricing strategy, and why it can be better than customer value-based pricing strategies. He advocates three main reasons: It […]
The Impact of Digitalization on the Commercial Function
How Digitalization Impacts Pricing
Roadmap for Fast Profit Growth
Today, a growing number of companies are focusing on pricingprocesses and capabilities to improve profitability. They understand thatbecause customers’ perceptions of value vary—as does their “willingness-to-pay”for that value—it is important to treat different customers differently atdifferent times, especially as markets become more dynamic. Successful sales people intuitively understand thesevariations in willingness-to-pay. The challenge however is […]
Collaboration, Case Studies and Commercial Excellence at Vendavo EMEA User Conference
Why Commodity Suppliers’ Path to Commercial Excellence Must Include Dynamic Pricing
Vendavo Featured on Martech Series: 10 Tips for a More Successful Price Optimization Project
Managing pricing effectively can have a greater bottom-line impact than focusing just on costs. The math is straightforward: A company with a 65% gross margin and operating costs of 50% of sales would need to reduce its cost of sales by 3% or cut operating costs by 2% to equal the result of a 1% […]
Powering Your Shift to the Cloud
Demonstrating Real ROI for Your Pricing Solution
When allocating any significant amount of budget to aparticular tactic or tool, you need a strategy for demonstrating ROI.Leadership wants to know the value of their expenditure and whether or not it’sthe most effective way to achieve their goals. The bigger the investment, thegreater the demand for a healthy ROI. But demonstrating ROI isn’t always […]