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Pricing for Commodity Ingredient Manufacturers
Talk to an ExpertDiscover the pricing insights to help you get there.
The past year and a half has hit hard. As we all work to adapt and pivot to new challenges, we decided to gather insights and resources all in one spot for commodity ingredient based manufacturers like you. Take some time to discover actionable, relevant information to help you explore new opportunities and efficiencies through the lens of pricing. And, be sure to reach out if you need any help.
A snapshot of current market challenges
We all know the pandemic has had a massive impact on the markets. In fact, no industry has been left untouched. In some cases, demand has skyrocketed. In others, it has plummeted. Each scenario comes with its own unique set of challenges. From fluctuations in the cost of raw materials to evolving nutritional demands to increased operational competition, get a better understanding of the challenges you may be facing and discover how your team can overcome them.
External market conditions impacting your bottom line
The almost constant flux in the market over the past couple of years has resulted in global economic instability. In times of uncertainty, many organizations jump to cut their prices without considering the long-term impact. Understanding outside market influences on your business can help you make more informed decisions. Take a look at the market conditions we’ve identified that may be impacting your bottom line.
Raw material fluctuations
Demand in some areas has increased too quickly, resulting in raw material shortages that in turn create price fluctuations and shortages.
Increased competition
With certain operational segments seeing an increase in competition, the pressure to discount prices also increases.
Changing consumer demands
Across geographies and generations, nutritional demands are changing. This means increasing R&D activity to offer new products to meet evolving needs.
Currency fluctuations
Exchange rate fluctuations and a slow increase in export and import activity after the pandemic may be impacting profits.
Changing government regulations
Changing government safety and sanitization measures is a huge undertaking and cost to accommodate.
Internal challenges impacting your bottom line
With many organizations of large size and expansive reach, there are existing internal challenges that can begin to cut into profits if left unaddressed. Based on our research and knowledge of other similar organizations, here are common challenges that may be impacting your business.
Lack of true-cost awareness
Are you managing and monitoring the total cost to serve? Including promotions and rebates? If you're not keeping track of every dollar, you may be impacting your bottom line.
Cumbersome manual data entry
Are you still entering pricing data manually? This process is time consuming and labor intensive – straining already tight resources – and potentially inaccurate.
Slow & inaccurate customer quotes
As the market moves faster, so too should your quoting process. However, in an effort to be fast, costly mistakes can be made. This is further exacerbated by attempting to look at data manually.
Understand how you’re doing against the competition and how to get an edge
One of the best ways to track trends in the market is to understand what your competitors are doing, such as knowing their product offerings and pricing. Browse the content below for strategies to get and keep a competitive edge.
Checklist: Will your business benefit from a total profit platform?
Check which scenarios apply to your company. According to Gartner’s 2019 Market Guide for B2B Price Optimization and Management Software, more than one check means your organization is a good fit for a total pricing solution.
- The volume or rate of list price changes is impractical or expensive for people to perform without automation
Price management is distributed across multiple regions, but requires some centralized control
- The organization seeks to leverage advanced statistics and machine learning to fix suboptimal pricing practices identified in historical deals. It has a large volume of clean, historical sales transactions with which to train the PO&M models
- The organization wants to calculate prices and discounting thresholds in real time based on factors such as the type of customer, the mix of products, product costs, product availability, competitors, geography and corporate priorities (for example, targeting revenue or margin)
The power of dynamic pricing software for a company like yours
A cloud-based pricing solution can optimize and automate your pricing strategy. The pricing software from Pricefx uses AI-powered insights to help you understand your data quickly, adapt to market changes in record time and empower your team to drive profitable growth. Here’s how a good pricing solution impacts each stage of pricing:
PLAN
Unlock hidden value in your sales transactions and customer data in weeks, not months.
PRICE
Set and manage prices in real time to meet market challenges as they pop up.
PROFIT
Using value estimation and deal planning workflows, unlock unique market advantages.
Seize the benefits of profit-increasing pricing software
Your business and how our software can help is what we’re passionate about. Reach out to us to see how our industry-leading pricing solutions can keep your company competitive and continually growing.