News, News Coverage

A Survey of 1,700 Companies Reveals Common B2B Pricing Mistakes

By Vendavo
June 7, 2018

Poor pricing practices are insidious — they damage a company’s economics but can go unnoticed for years. Consider the case of a major industrial goods manufacturer that was struggling with low profit margins, relative both to competitors and to its own historical performance. It traced much of the cause to a mismatch between its sales incentives and pricing strategy. The manufacturer was compensating sales representatives based solely on how much revenue they generated. Reps thus had little motivation to hit or exceed price targets on any given deal, and most were closing deals at the lowest permissible margin. Read the full story at Harvard Business Review

  • margin , pricing , profit

    Vendavo

    Vendavo powers the shift to digital business for the world’s most demanding B2B companies, unlocking value, growing margin and accelerating revenue. With the Vendavo Commercial Excellence platform, companies develop dynamic customer insights and optimal pricing strategies that maximize margin, boost sales effectiveness and improve customer experience. With an annual margin improvement totaling more than $2.5 billion across companies in chemicals, distribution, high-tech and manufacturing, Vendavo delivers cutting-edge analytics and deep industry expertise that help companies stay one step ahead. Vendavo is headquartered in Denver, CO and has offices around the globe.