Align Your Pricing Software Capabilities with Your Business Model
Price is the top profitability lever any organization can leverage. When aligned with customers’ willingness to pay, price also plays a key role in the delivery of premier customer experiences and inevitable brand loyalty. Further still, custom pricing initiatives go a long way in solidifying customer intimacy strategies. But just as one-size-fits-all pricing fits no […]
Capturing More Value With Price Segmentation
One of the most basic concepts of pricing is that price generally reflects (or should reflect) value. But it’s important to remember that value is not defined
Drive Better Margin and Customer Experience with Pricing Optimization
Pricing Optimization is a capability that is finally making its way into the mainstream for companies in all industries. The term price optimization deserves some definition though, as buzzwords can confuse rather than clarify understanding. Pricing optimization broadly refers to approaches for setting the optimal list or target prices to achieve a certain objective or […]
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 […]
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 […]
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% […]
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 […]
The Future of Pricing Capabilities in CPQ: CPQ Series Part 4
In my final post in this series on intelligent CPQ, it’s important to point out pricing behaviors are changing and they are changing fast. “Cost plus” or “List less” pricing is no longer enough for many companies. The approaches are too static.The sales or channel partner teams usually uses some form of discount to reduce […]
4 Steps to Price Optimization: CPQ Series Part 2
In the first post of this series on CPQ tools, I looked at intelligent CPQ and why it’s important. Price optimization is a big part of the why so let’s spend more time now looking at what is required to use it. To do this, we will take a deeper dive into the four how-it-works steps […]
How to Optimize Pricing to Drive Margins and Customer Experience
As price optimization becomes more mainstream, it’s time to capitalize on the potential benefits to margin and customer experience.