Vendavo® Pricing Solutions: Benefits Calculator
Analytics
Understand the true profitability of customers and products over time. It is important to keep a pulse on the health of your business by monitoring the profitability of your transactions with customer performance and deal performance. Through analytics you gain visibility to track volume commitments, and revenue and profitability trends in real time. Find out what’s driving bad deals through win/loss, monitor deal profitability, and quickly take corrective action.
Your Answer for Analytics Maturity Ranking
- No consolidated analysis tool
- Little visibility into all on and off invoice discounts
- Time consuming collection of data
- Limited info on all CTS elements
- Limited understanding of price variation across business dimensions
- Average visibility of invoice discounts
- Performing guided and ad-hoc analysis on the fly
- Full visibility into price waterfall at transaction level
- Full understanding of cost of serve
“With Vendavo analysis and reporting we’ve been able to consolidate data points – decisions – and still allow collaboration across the enterprise.”
– Corning
Price Management
Price management enables organizations to operationalize their ideal pricing strategies across their lines of business, regions, and channels. Excellent price management supports all major pricing strategies such as value-based and competitive-based, to ensure pricing is always up-to-date and based on ever-changing market conditions.
Your Answer for Price Management Maturity Ranking
- Manual administration of price changes
- No ability to mass update price lists or contract prices
- Semi-automated price adjustments, alerts to cost changes
- Consistent but time consuming processes for updating price
- Centralized targets and guidance
- Automated list price setting process
- Ability to quickly set prices on new parts
“On average, a 1 percent price increase translates into an 8.7 percent increase in operating profits…”
– McKinsey
Price Optimization
Price optimization is based on advanced pricing segmentation models that understand and represent differences in customer willingness-to-pay and competitive behavior within a market. Calculate optimal floor, target, and stretch prices with specific product offerings an determine the greatest likelihood of deal success for each customer and product offering combination.
Your Answer for Price Optimization Maturity Ranking
- Basic customer/product segments
- Competitive data not used in segmentation or price setting
- Most products are set using cost plus methods
- Static customer/product segments
- Some market/value based pricing
- Optimized price based on dynamic factors
- Use competitive behavior when optimizing price
We are well in the range of 170 basis points improvement. When you think of a $60 billion-dollar company, and 100+ basis points of margin, that is a lot of money to take to the bank.
– Dell, Executive Director of Global Pricing Transformation
Deal Management
Quote intelligently, negotiate confidently, and collaborate seamlessly. Deal management facilitates collaboration on deals across the organization and automates a dynamic approval workflow to ensure the right people review the right deals and quote in a timely fashion.
Your Answer for Deal Management Maturity Ranking
- Manual adjustment of contracts
- Manual management of contract terms
- Quote cycle time of >36hrs
- Limited ability to analyze good and bad prices
- Centralized repository for contract
- Quote cycle time between 12-36hrs
- Anecdotal use of competitive data
- Clear DOA process
- Automated adjustments to contracts
- Contextual analytics
- Quote cycle time <12hrs
- Automated DOA processes
- Guidance embedded in CRM
“The 1st quote a customer receives has the highest probability of winning the deal.”
Gartner
Your Results
- Annual Sales Revenue: $0
- Return on Sales: 0%
Addressable Revenue
- Analytics: 0%
- Price Management: 0%
- Price Optimization: 0%
- Deal Management: 0%
Your Ranking
- Analytics: 0
- Price Management: 0
- Price Optimization: 0
- Deal Management: 0
Total Benefit Range
$ 0
Conservative
$ 0
Expected
Your Results
Here’s your range of benefits shown in a chart and table: a conservative estimate on the left and an expected benefit on the right. The table also expresses the benefits as a percentage of sales, for easy comparison across businesses with different revenue figures. The areas of business process improvement are highlighted with each category adding to the next, so your company can compare the total conservative and expected benefits you will achieve after integrating a Price Management solution.
Learn More
Your estimates are based on real results, and typical ranges of improvement. If you’d like to see more specific results to better understand how quickly you can achieve these goals, please contact us!
We’ll arrange a call with one of our commercial excellence solution specialists, who will walk you through a more detailed evaluation of your situation. By quantifying the benefits, it’s easy to identify Price Management integration as your next priority in commercial excellence.
At Vendavo, we empower our customers around the globe to unleash their true commercial potential, claim their competitive edge, and become the B2B performance leaders they are meant to be.
For twenty years, we’ve improved B2B profitability for enterprise customers in process chemicals, discrete manufacturing, aftermarket parts, and distribution. Today, we’re helping organizations profitably improve their commercial processes in a digital economy that spans all channels to market.
Other resources that can help you understand how to improve your commercial excellence:
- 2 minute video explaining commercial excellence.
- Latest blog post on demonstrating real ROI for your pricing solution.
- Find us at our next commercial excellence event.
- Learn more about Vendavo.
To schedule a 15 minute exploration, contact me directly: