Key Roles & Responsibilities You Need On A Software Project

October 19th, 2021

Chris Keenan
VP Customer Enablement at Pricefx

What Roles and Responsibilities Does My Team Take in a Pricing Software Project?  The last thing you want to be doing is spending months building a pricing solution only to find that the people you need to be its users are resistant to change and are unwilling to use it. Something that your management team would certainly be displeased to discover.  At Pricefx, we’ve spent the last decade advising project leaders on the key internal resources they need to successfully complete a pricing implementation project. The roles and groups of people highlighted below are a necessity in any implementation project....

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Avoiding Inflationary Margin Compression with Dynamic Pricing

October 12th, 2021

Gabriel Smith
Chief Evangelist at Pricefx

Avoiding Inflationary Margin Compression with Dynamic Pricing The Current Economic Situation  Supply chain disruption and shortages combined with quantitative easing and improved employment have triggered massive inflationary pressure. Many companies and their pricing teams are struggling to keep up with the rate of change and suffering from margin compression and revenue disruption as a result.  As of September 2021, the annual US inflation rate is at 5.3%, the highest since 1990. Analysts say it could cool down, but it will likely continue at record levels into 2022 and beyond.    Why it’s Hard  It’s difficult for large companies to manage this because many have millions of price points in the market, and 66% of...

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How Long Does It Take to Implement Pricing Software?

October 14th, 2021

Chris Keenan
VP Customer Enablement at Pricefx

How Long Does It Take to Implement New Pricing Software?  If you were to go to any pricing software vendor and ask, “how long does it take to implement pricing software?”, you would get as many answers as there are vendors. That’s because the length of an implementation project depends on a variety of factors, including what you want to achieve, the complexity of your business process, the number of people involved, your dedication to meeting milestones and supplying feedback.  We’ve implemented hundreds of pricing software projects and can usually tell how long pricing software will take to implement based...

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4 Reasons Why Our Software Projects Fail

October 12th, 2021

Chris Keenan
VP Customer Enablement at Pricefx

4 Reasons Why Our Software Implementation Projects Fail You’re probably here because you’re ready to implement new pricing software but have heard many horror stories about software projects that went horribly wrong. You know, the implementation projects where there was a lack of dedicated internal resources, so the project went over budget and took double or triple the time to be implemented. And after all of that, the final result was a tool that no one used or worse didn’t do what was intended.   We’ve helped several companies to implement software that’s so well received, it gets rolled out...

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F-Words

CPQ: SAP, Pricefx, or a Hybrid Approach?

September 24th, 2021 (Updated 09/27/2021)

Bill Thane & Garth Hoff

This article was first published by Canidium on September 15, 2021. We thought it might be interesting to look at how Pricefx and SAP approaches to Configured, Price, Quote (CPQ) compare and how they can best be aligned for success. The approach for considering where solutions align, differ, and complement one another is based on recent interactions with companies across multiple industries, market research, and Canidium’s first-hand insights as an implementation partner of both SAP and Pricefx solutions. Read this blog to learn more about which approach is right for you. SAP CPQ Approach SAP CPQ is a good CPQ tool...

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8 Pricing Essentials to Help Mitigate Cost and Risk

August 4th, 2021 (Updated 08/05/2021)

Carolina Alvarez
Business Development Representative at Pricefx

8 Pricing Essentials to Help Mitigate Cost and Risk   A common struggle many businesses are familiar with is mitigating costs and controlling risks to reach margin targets. Cost-plus pricing methods (where price execution is determined from static rules rather than real-time changes) are unable to respond to fluctuating market dynamics. Therefore, prices become outdated and potentially harmful to your business – often overnight.   Another problem is inconsistent pricing deviations, meaning prices do not reflect a customer’s willingness to pay.   Basically, in the absence of pricing and quoting processes standardization, contract pricing and customer agreements are inconsistent, and because of habitual over...

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What Is CPQ Software?

August 27th, 2021 (Updated 09/22/2021)

Milan Haba
Senior Manager | Product Marketing at Pricefx

What Is CPQ Software? Did you know that sales reps spend 66% of their day on administrative tasks and that 50% of their time is wasted on unproductive prospecting and error correction. This should be worrying because it’s the sellers who are first to produce a complete, accurate quote that wins the deal at least 60% of the time. Perhaps because suppliers that make buying easy are 62% likelier to win high-quality sales. Configure, price and quote (CPQ) solutions will no doubt have already have crossed your path, but let’s take a deeper look at what they are, where they...

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What Is Value-Based Pricing?

September 10th, 2021 (Updated 09/15/2021)

Jose Paez
Solution Strategist at Pricefx

What Is Value-Based Pricing? Value-based pricing is founded on the concept that value and price are not the same. There is a clear distinction between the price that anyone (be it a person or a company) pays for a given product or service and the inherent value that is received as a result. When we talk of value, we must be clear that this has nothing to do with what we think our product offers to our customers, e.g., speed, flexibility, good looks, etc. These are just features that address a specific need for a customer, these needs when satisfied will become benefits and these benefits give way...

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What’s the Difference Between CPQ and Pricing Software?

September 1st, 2021

Milan Haba
Senior Manager | Product Marketing at Pricefx

What Is the Difference Between CPQ and Pricing Software? You’re looking to update your pricing and you’ve heard that Configure Price Quote (CPQ) solutions can boost sales teams’ proficiency by 45% and that improvements in price, like those achieved with pricing software, can result in three to four times profitability. Very impressive. Just what you’re in need of. But which better aligns with your goals? What exactly is the difference between a CPQ and pricing software? Let’s explore the differences between a pricing solution and a CPQ by focusing on the key capabilities they deliver and benefits they bring. What...

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Amazon Prime Day Postmortem: Should Retailers Compete?

June 26th, 2021 (Updated 07/26/2021)

Jochen Schmidt

Amazon Prime Day: Should Retailers Compete with the Giant?  Retail behemoth Amazon does not release its sales figures for its annual discount extravaganza event, but the sales estimates alone are enough to make any fully grown retailer weep. And as many of you look over the numbers of this years’ Prime Days and plan whether to go up against the giant on their other major sales days; we’ve put together some things to consider for the next Prime Day event taking place in   To compete or not to compete? That is the question and a painful one at that!  There...

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Choosing Pricing Software: What Questions Should You Be Asking?

July 1st, 2021

Randy Spal & Peter Barranca
Business Development Managers at Pricefx

Choosing Pricing Software: What Questions Should You Be Asking? Choosing a pricing solution is an important decision and a major commitment – one that has the potential to make or break your pricing efficiency and success.  If you’re at the software vendor evaluation phase of your pricing digital transformation journey, you’ll have got past all the buzzwords and sales hype, and will be getting down to the nitty gritty of what each company can offer you and whether it will help you get where you want to go.  You’ll have whittled down your potential vendor list to include only those...

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What Is Value-Based Pricing and Why Do You Need It?

June 28th, 2021 (Updated 10/05/2021)

Duncan Hendy

What Is Value-based Pricing?    When it comes to sales and profit scalability, pricing is the real fulcrum. Developing a strategy for pricing helps brands maximize profits and market demand, among other factors. Simply put, a pricing strategy is an approach you can use to determine the best price for a product.   Pricing is hugely influenced by various market indices, such as production, competitors’ pricing, and target customers. More often than not, sales executives need to account for the pricing strategy due to factors such as business objectives, revenue goals and product positioning. Researching your current market can help provide...

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Is Managing Value Perception Essential in the Manufacturing Industry?

June 15th, 2021

Jose Paez
Solution Strategist at Pricefx

Why Is Managing Value Perception Essential in the Manufacturing Industry Warren Buffett once said, “Price is what you pay; value is what you get”. Value can be seen as everything in sales. You’re no longer just buying an item, or thousands of items as the case may be. You’re paying for the value that purchase provides you with. The opportunity for increased business, the improvement in efficiency in your processes, the reduction in cost or rework, the added features your product or service will have that will enable your organization to expand to new markets, or maybe even all of...

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How Fair Is the Expectation That Digital Transformation Will Revolutionize the Chemical Industry? 

June 11th, 2021

Robert Smith
Industry Advisor at Pricefx

Can Digital Transformation Revolutionize the Chemical Industry Where It Counts? Success or failure within the chemical industry lives or dies on any given business’s ability to adapt and revolutionize.  If your business is merely riding the waves, trying to stay above water, it’ll soon be falling by the wayside. Only by driving ahead and revolutionizing your business will you see true success.  One way in which many businesses believe they can achieve this revolution is through digital transformation.  The integration of digital technology through all areas of business is increasingly prevalent throughout the chemical industry. With that, it’s becoming more...

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5 Ways B2B Manufacturers Can Successfully Adopt B2C Strategies 

June 8th, 2021

Manuel Pfeifer
Senior Solution Strategist at Pricefx

How B2B Manufacturers Can Successfully Adopt B2C Strategies Over the last few years, we’ve seen a wave of B2B companies adopting some of the profit-driving strategies of their B2C cousins, and to great success.   Let’s explore some of the growing trends.  1. Skipping Steps in the Value Chain   Traditionally, customers who wanted to buy direct from manufacturers were politely but firmly turned away. But with the growth of e-commerce and platforms like Amazon, Direct to Consumer (D2C) selling has become an opportunity for manufacturers to connect directly with their end customer.  Today, customers do their research. Not only will a...

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Pricing in Excel: Retail & eCommerce’s Very Own Black Box of Despair

June 7th, 2021

John Gilbo
Account Executive at Pricefx

Pricing in Excel: Your Very Own Black Box of Despair  I know, I know. Everyone these days is harping on about why you should be promoting your pricing out of Excel into some new fancy bells-and-whistles solution.   But to those of us passionate about pricing and helping retailers achieve pricing excellence, it just happens to be a fact: pricing in Excel is holding you back in ways you may not even be aware of. Not because it is bad software – it’s excellent at doing what it was designed to do – but because no one could ever have imagined...

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Essential Industry-relevant Benchmarks and Standardized KPIs for Pricing Success

May 26th, 2021 (Updated 05/28/2021)

Billy Graham & Chuck Davenport

Essential Industry-relevant Benchmarks and Standardized KPIs for Pricing Success   While theories about how price affects the market, response go back to John Maynard Keynes in the 1930s, Pricing as a professional discipline has only really been a topic of conversation since the early 1990s. Since then, pricing professionals have been playing catch up to mature procurement processes and capabilities. The challenges have been both internal and external – few companies have had the data to measure their own performance, and there has been no objective source of truth to help executives really know what good pricing looks like.  Even 30 years later, Pricing is often considered a...

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Pricefx Named a Finalist for 2021 SAP® Pinnacle Award in the Partner of Year – Endorsed Apps Category

May 18th, 2021 (Updated 05/27/2021)

News&Blog
Admin at Pricefx

Pricefx Named a Finalist for 2021 SAP® Pinnacle Award in the Partner of Year – Endorsed Apps Category For the second year in a row, Pricefx is recognized for world-class technology innovation, customer success and market traction Pricefx, the global leader in cloud-native pricing software, today announced that it has been recognized by SAP as a finalist for a 2021 SAP® Pinnacle Award in the Partner of the Year – Endorsed Apps category. This award recognizes an SAP partner that has created a world-class SAP endorsed app that complements SAP technologies and has contributed a significant amount of value to...

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How to Price in Alignment with Key Business Objectives Using Market Simulation 

May 12th, 2021

Toby Davidson
Chief Product Officer at Pricefx

Pricing in Alignment with Key Business Objectives Using Market Simulation  Traditional price optimization helps you maximize profit on your products based on price elasticity derived from historical sales transactions. The problem is that it calculates the optimum price for individual products without considering the wider impacts of a price change.  Let’s say that your traditional price optimization software recommends a change of price to product A, showing a potential uplift of 10%, and another on product B, showing an uplift of 15%. It’s fair to assume, therefore, that if you applied the suggested changes to both products, you’d see a combined increase in profit of 25%.  Alas, the fact is that applying price changes to two products at the same time could actually result in no change or even...

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How to Reduce Overhead and Risk in the Chemical & Process Industries 

May 10th, 2021

Robert Smith
Industry Advisor at Pricefx

Reducing Overhead and Risk in the Chemical and Process Industries  Today’s CFO encounters ever-increasing complexity in addressing the subjects of risk and overhead in the chemical and process industries.    Typical risk factors include:  Earnings volatility  Cash flow  Accurately projecting earnings in the face of business uncertainty  Efficient and effective use of capital  Exchange rate exposure Hedging to address raw material and currency volatility  Many overhead factors contribute to complexity in today’s market.    Some that capture the most attention are:  Inventory and work in progress  Selling and administrative costs.    Investing in a pricing solution like Pricefx helps you address overhead and...

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Stevie Awards Manufacturing Solution Business Award Winner: Pricefx

April 29th, 2021

News&Blog
Admin at Pricefx

Business Solution for Manufacturers: Pricefx Wins Stevie Awards Pricefx has just been awarded the Silver Stevie® Award in the 2021 US Business Awards® in the category of manufacturing solution. The award was determined by the average scores of judges comprising of executives from around the world. Out of the over 3800 submissions, we’re proud of the fact that experienced leaders view Pricefx’s solutions as drivers to help manufacturers leverage pricing opportunities within their organization. Last year, Pricefx won 2 Stevie awards, making this the third award in two years. A Little About the Stevies: The American Business Awards are the U.S.A.’s premier business awards program. All organizations operating in the U.S.A. are eligible to submit nominations – public and private, for-profit...

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Pricing: The Real Differentiator in a Commodity-Driven Business 

April 28th, 2021

Robert Smith
Industry Advisor at Pricefx

Pricing: The Real Differentiator in a Commodity-Driven Business  Commodity-driven businesses are challenging to run successfully.  Price transparency is high, and value differentials versus competition are low to non-existent, driven primarily by service differentiation.  Earnings and margin targets are heavily impacted by volatility in underlying raw material and energy costs.  As well documented by many consulting firms, price is the biggest lever available to a company to address earnings improvement, with far higher leverage than cost reduction or increasing volume.  Additionally, most commodity-oriented businesses are mature and the temptation to improve business by seeking additional market share or volume simply leads...

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The Next Evolutionary Step in Price Optimization: Market Simulation 

April 27th, 2021 (Updated 05/12/2021)

Milan Haba
Senior Manager | Product Marketing at Pricefx

The Next Evolutionary Step in Price Optimization: Market Simulation  We’re delighted to be releasing Bijou 7.0 this week and to announce its substantial number of usability improvements for even greater efficiency. (More on these below).   But we’re most excited to tell you all about our pièce de résistance: Market Simulation.  Market Simulation: The Game Changer for Business  Cannibalization is the biggest hidden challenge companies are facing today because most algorithms pretend that changing the price of one product won’t impact the sales of another. Harsh is the lesson that teaches that applying “optimal” discounts to two products at once (hoping...

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Pricefx Next Gen: How Students Used Pricefx To Uncover Key Profit Drivers

April 21st, 2021

News&Blog
Admin at Pricefx

How the Winners of the Simon Pricing Club Case Competition Used Pricefx To Uncover Key Profit Drivers  Our rapidly evolving digital landscape means business students must be able think critically and adapt quickly to change. Partnerships between business, technology and academia are vital in preparing them for the challenges they’re likely to face in the real world.  The world-class Simon Business School at the University of Rochester is dedicated to putting real-world technology into the hands of its students in order to better prepare them for careers with companies using modern, digital approaches to compete.  That’s why Pricefx has once again partnered...

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How to Protect Your Margins in a Competitive Landscape (Chemical Process Industry)

April 20th, 2021

Robert Smith
Industry Advisor at Pricefx

How to Protect Your Margins in a Competitive Landscape    Consider recent news headlines from the Wall Street Journal, reflective of ongoing change in the COVID landscape:  March 18, 2021 – Oil Prices Fall on Fresh Fears of Dwindling Demand  “Oil prices fell more than 7% on Thursday, recording their biggest one-day drop since September…”  March 24, 2021 – Leap in Gas Prices Puts $3 a Gallon in Sight  “Some analysts see further gains ahead…Booming gas prices join a recent rally in other commodities…Supporting gasoline’s climb is a rebound in crude-oil prices and a big drop in the amount of...

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Why E-commerce Is NOT a Threat to Retail

April 16th, 2021

Jochen Schmidt

Is E-commerce Is A Threat to Retail? Not Unless You Allow it to Be. When Amazon and eBay launched in 1995, the disruption to traditional retail stores was immense. Retail music chain Tower Records and Borders bookstore went bankrupt, Musicland was sold and Blockbuster couldn’t survive.  But old-fashioned brick–and–mortar retail still offers buyers a unique opportunity to try on, test out or physically feel the product they’re about to buy. The offline shopping experience can be therapeutic and social, and a growing attitude for ‘shop local’ gives hope to smaller retailers across communities.  However, the unexpected events in 2020 only...

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How to Determine Proxies for Pricing and Build Value in Your Products

April 6th, 2021

Jose Paez
Solution Strategist at Pricefx

Steps to Determine Proxy Pricing in Aftermarket  How does your business determine proxy pricing for aftermarket sales?  With some organizations holding thousands of products that have been developed over decades, it can be difficult to determine their real pricing power, not to mention your position in the market for said products, if any.  For example, when you have customers seeking parts for machinery 10 years old, how do you begin to determine pricing?  How does your competition factor in? What say does brand value have? Does it come down to win and loss?  There are some key variables to consider...

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Price Optimization in the Food and Beverage Industry? Oh, Yes! 

March 3rd, 2021 (Updated 03/24/2021)

Ryan Fritz
Account Executive at Pricefx

Price Optimization or F&B in 3 Steps As a company in the Food and Beverage industry, you know that your product portfolio, types of customers, and regions served change and grow along with you. Blanket pricing doesn’t work, but the more complex your organization becomes, the harder it is to optimize prices according to product type, customer behavior or region.  And if your margins don’t reflect that New Yorkers go crazy over bagels, that plant-based nutrition and local produce are trending, or that tariffs on exports to the UK are now dearer than to Ireland, you’re not optimizing prices.  Optimizing...

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Manage

Pricing with Excel… and Other Ways to Lose Money 

March 17th, 2021 (Updated 03/24/2021)

Tim Shorter
Global Vice-President Sales, Food and Beverage at Pricefx

How to Plug the Leak and Stop Losing Money With Excel In 2003, Canadian power generator, TransAlta, lost $24 million due to copy-and-paste mistakes. Two years later, Kodak added $9 million to its third-quarter loss due to a typo. And in 2012, JP Morgan lost $6 billion due, in part, to a copy-and-paste error in Excel.   Statistics have shown that 88% of spreadsheets contain significant errors. So out of 10 spreadsheets, only one is showing you accurate data. Do you really want to manage pricing off that?  Unfortunately, all too frequently, a decimal place can be the difference between an...

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The Keys to Reducing Cost and Risk in the Food and Beverage Industry 

January 19th, 2021 (Updated 03/24/2021)

Carolina Alvarez
Business Development Representative at Pricefx

8 Pricing Essentials for Reducing Cost and Risk in the Food and Beverage Industry  Have you been struggling to mitigate costs and control risks in an attempt to reach margin targets?  Are you, like many, still using cost-plus pricing methods, where price execution is based on static rules or formulaic price calculations that aren’t updated in real-time and are, therefore, unable to respond to changing market dynamics?  Are your pricing deviations often inconsistent, meaning pricing can’t be optimized according to customer willingness to pay? Is ad-hoc trade spend based on gut feeling rather than data-driven insights, leading to uncertain revenue...

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