Pricing is one of the most critical components in your ability to drive profits in your company. Unfortunately, many distributors don’t feel like they have the pricing expertise in-house to handle the complexities of a solid pricing strategy.
epaCUBE’s Price Optimizer software thinks of pricing like a distributor. We understand the reasons products are grouped together when establishing prices, and how consistency helps in developing relationships with customers. epaCUBE enables you to know when to strategically change prices, and guide you in setting the levels.
epaCUBE Price Optimizer can help you create optimized pricing for gross profit gain by:
Leveraging industry best practices embedded in the epaCUBE software.
Easily and instantly visualizing opportunities for gross profit improvement through optimized pricing.
Validating and adjusting the optimized recommendations based on your knowledge of your business.
Seeing a what-if impact of analysis of all optimized pricing changes.
epaCUBE Makes Optimized Pricing Easy
It’s easy to manage your pricing for continuous profit improvement each day because it’s all run from the epaCUBE gross profit optimization dashboard. The dashboard leverages industry best practices to identify pricing opportunities. This means your team doesn’t even need to know exactly what to look for in order to begin.
Embedded Best Practices
Using embedded best practices, epaCUBE automatically calculates and identifies your gross profit opportunities. You immediately see where you can take action right now to improve gross profit. It’s easy to take a deeper look at each opportunity with a simple click.
Push-button Statistical Analysis
At the most fundamental level, the approach epaCUBE takes to distributor pricing is to analyze your sales history and then apply statistical formulae to create a minimum and maximum range, a statistical floor and ceiling, a target price and then evaluate acceptable ranges in that statistical distribution.The most obvious and easiest place for your team to start is to address the lowest gross profit outliers that are below the statistical floor. Your pricing managers can then tag these exceptions for management action or new sales negotiations.
You can easily identify the outliers in high gross profit transactions. While these don’t represent opportunities to pick up gross profit, they do skew the analysis. These high gross profit transactions pull the curve up giving you falsely high statistical target. Fortunately, epaCUBE doesn’t just eliminate these outliers, high or low, but instead gives you the ability to tag them, categorize them and mark them for future action.
Add Your Market Knowledge to Optimize Your Customer and Product Groups
The next place to look is in your customer and product groups. Price optimization is more than just crunching numbers. It requires proper segmentation, which requires the application of your own knowledge of markets, strategy and tactics in your business and industry. epaCUBE Price Optimizer helps you extend your groups in meaningful ways by easily going deeper than just customer size or industry code and looking at groups with similar profitability, buying power, cost to serve, average order size and more.
Invest in Internal Core Competencies Instead of One-Time Projects
Most importantly, epaCUBE allows you to take action to continuously improve your gross profit. Your analysis isn’t a one-time event but a process that keeps your margins moving in the right direction.
We Partner With You For a Secure Outcome
We’ve made it easy to get started by offering our Price Optimizer software in a cloud subscription model. That means you can immediately improve your gross profit without a large capital expenditure with the financial flexibility of a monthly payment. And there’s no need to purchase new equipment or increase your internal IT requirements. You’ll always have the most up-to-date version of the software. To accelerate your path to gross profit gains and increase the return on your software investment, you even have the option to have our own pricing experts run the software for you. Most importantly, you’ll be building your own internal core competencies as epaCUBE stays with you to mentor and train your team to secure gross profit gains.