Pricing Optimization Isn’t Always About Raising Prices
Are you losing business because you’re pricing products too high?
Price optimization isn’t always about raising prices, it’s about offering the right price to the right customer at the right time to win the business.
Many distributors have essentially no segmentation of their customers and can only offer the same price for every transaction regardless of their customer relationship.
Some have only very simply segments based on company size, industry codes or geography. These kinds of segments are too broad to be useful and don’t reflect real customer behavior.
Two customers in the same industry can have widely different relationships with you – some are loyal, some are walk-in customers, some are convenience buyers.
Good segmentation is the key to understanding real customer behavior, which should be the driver of your pricing strategy.
Price optimization isn’t about raising prices for everyone, it’s about understanding your customers so you can give them the right price for each transaction.
epaCUBE software and expert pricing services can help guide you in creating statistically relevant segments for accurate pricing and increased profits.