Transformed Pricing Delivers High-Value Impact for Dell
Discover how Dell leverages Vendavo to optimize price and increase quote velocity across vast product lines and geographies
Highlighted Business Outcomes
Fast, efficient quoting
Increased quote velocity to just 4 hours for 90% of deals
Faster, more accurate quotes
Strategic price guidance boosts win rates and Dell profitability
Improved sales effectiveness
Links built between optimal price & sales compensation
The Challenge
Dell Technologies is an approximately $60 billion American multinational technology company. To improve pricing inefficiencies, increase win rates, and boost profitability, the company partnered with the pricing experts at Vendavo for a strategic, long-view look at transforming their pricing function. After reviewing the entire process, they identified major opportunities for improvement within price optimization and quoting.
The Solution
To implement improvements effectively, the Dell pricing team started by ensuring all members of the C-suite were on board and involved in the new program. This was critical for spearheading new pricing processes across such a vast product portfolio. Goals centered on moving beyond determining price by simple gross margin calculations to setting prices optimized for increasing win rates and Dell profitability. Vendavo capabilities were brought in to generate quotes faster for customers, and more efficiently. Thanks to a new reporting engine, the pricing team can also measure results and regularly report progress in a data-driven way.
90% of our quotes are going out within 4 hours and 75% of our quotes don’t require any pricing approval – the system will tell you how to price it and as long as sales can price in that range, no approval is needed. Huge efficiency improvements.
Arunkumar Narayanan
Senior Vice President Compute and Networking Product Management
The Results
A complete transformation of the Dell pricing program has resulted in quotes getting out the door in just 4 hours for 90% of the company’s deals. Prices have been optimized to increase win rates and the company is now pioneering sales effectiveness by linking right-price to sales compensation. All this has resulted in 100+ basis points of margin and a satisfied C-suite.
Huge improvements in our margin delivery, and when you think of a $60 billion company and you’re talking about 100-plus basis points of margin, that’s a lot of money to take to the bank.
Arunkumar Narayanan
Senior Vice President Compute and Networking Product Management
About Dell Technologies
Overview
Dell Technologies is an approximately $60 billion American multinational technology company with an expansive product portfolio that includes personal computers, servers, televisions, computer software, and computer/network/information security solutions.
Fast Facts
Website: www.dell.com
Industry: Computer Hardware/Software/Cloud Computing
Headquarters: Round Rock, Texas, USA
Region: Global
Employees: 158,000+
Products used: Enterprise Pricing Platform