The Secret to Continuous Gross Profit Optimization
Your pricing manager may want to remove some segments out of the analysis by tagging them and then recalculating for a new analysis based on a better-defined statistical bell curve. You might also find customer and product segments that belong in more appropriate segments. Perhaps you need to assign contract pricing. Based on your own market knowledge or internal strategies, you might want to adjust the actual gross profit target and then recalculate. For example, stiff competition might drive your profit target down for a particular segment.
The pricing manager may make a decision for a pricing change and then flag that recommendation for review and approval by executive management, individual branch management or sales.
After taking action, you can now recalculate to visualize the impact of those changes. You are now ready to implement optimized pricing in your ERP system for gross profit gain.
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