Secrets to Success in Price Optimization
New profit from price optimization is easier than you think.
Data-driven analysis is the key to effectively setting prices, capturing market demand and maximizing gross profit. The leading distribution organizations know precisely what the right price is for a certain customer buying a certain product at a point in time; there is no guesswork involved.
Even though most distribution executives know they need to fix their pricing, they often put it off thinking it’s too difficult. It’s not too difficult, and if you have five minutes this video will show you where to begin.
Our users are telling us they are getting 450 or more basis points in new profit following this simple approach. And while 450 basis points is a game changer regardless of your sales volume or industry, there are a lot of other benefits to this process as well. You’ll enforce a consistent customer experience. Your customers will know they’re getting treated uniquely, based on their needs and behavior and get treated and priced the same way whether they talk to a different sales rep, place a phone order, order online or just walk in. That leads to a great omni-channel experience. You’ll also understand their behaviors and needs better, so you can earn more share of wallet with some data analysis. And of course, your employees will be more efficient in pricing and they’ll be happier because there will be less confusion, administration work and customer complaints.
3 Simple Steps to Higher Profit
So how does epaCUBE manage to do all of this? How does an easy-to-use software solution drive profits, customer experience and more? It really comes down to three simple steps that our experts help you set up and manage, all designed to match your exact business strategy:
- Set up customer and product segmentation that matches your profit goals.
- Up-to-date segmentation leads to an accurate and effective pricing matrix that your reps and customers will trust
- A statistically optimized pricing matrix leads to higher profit, reduced pricing overrides, better negotiations with customers, control over your individual pricing contracts and increased share of wallet.
epaCUBE Helps You Keep Score
We keep track of any pricing records you created or changed on our new performance scorecard. We know that if things are less profitable we need to do more analysis to see where it makes sense to change our segmentation, price levels and more. If it’s more profitable, there may still be more analysis to do to get even more profitable, but overall it is time to celebrate with your team because you’re making more profit.
The scorecard itself is very intuitive, easy-to-understand and easy to share. That way, your executive team knows how much profit you’re adding each week. It’s nice to be able to push a button and show your CEO that you added 450+ basis points to your profitability through price optimization.