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 Therefore, prices become outdated and potentially harmful to your business – often overnight.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 09/21/2021)

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 You Need Value-Based Pricing

June 28th, 2021 (Updated 09/14/2021)

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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Fast

Why the Time For Cloud Technologies Is Now – ACCEL Report

October 22nd, 2020 (Updated 03/24/2021)

Duncan Hendy

Why the Time For Cloud Technologies Is Now – Accel Euroscape Report According to American venture capital firm Accel’s recently published report, 2020 Accel Euroscape: Decacorn Unleashed, software has been “eating the world for 30 years now,” but the acceleration we have seen in the past decade puts us in a new software era that Accel calls “the rise of the giants”.  Accel has invested over $5B in more than 250 companies over the years and has increased its investments five-fold in the last five. Their report (written by Philippe Botteri, Varun Purandare and Candice du Freta) was published last week at the SaaStockEMEA and also unveiled the firm’s 2020 Accel Euroscape winners.  “It’s been a very special year in many ways for the Cloud ecosystem globally and in Europe.” ...

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Fast

COVID-19 and the Pressure of Digital Transformation in Pricing

September 18th, 2020 (Updated 03/23/2021)

Duncan Hendy

COVID-19 and the Pressure of Digital Transformation  Pre-COVID, most companies were in the early stages of ambitious digital transformation programs, but now they no longer have the luxury of time. In just a matter of months, digital adoption has been thrust forward several years. Digital initiatives that companies have been eternally putting off have become the top priority, albeit adapted through the lens of the “new normal”.  Adopting a Through-Cycle Mindset to Change While it might feel counterintuitive to invest against a backdrop of plummeting revenues, missed budget estimates, higher costs, and strained employees, technology and infrastructure, this is precisely the right time to advance your digital agenda.   While some CEOs...

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Realize

How to Structure Compensation Plans to Drive Sales Performance 

September 11th, 2020 (Updated 03/24/2021)

Duncan Hendy

Managing Compensation Plans That Drive Sales Performance  The companies with the highest employee morale and productivity pay a mix of salary and incentives. Financial incentives beyond base pay include commission, overtime, bonuses, profit sharing, stock options, benefits (insurance, vacation, leave, etc.), but what about the other “softer” forms of compensation that drive sales productivity?   There are plenty of ways to restructure your compensation plans to motivate sales teams, maximize productivity, and retain employees and customers. Many can be achieved without spending a penny. These often-ignored methods, explored in detail below, provide real-life solutions for extracting the best performances from each...

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Fast

Pricefx Gold Winners – Gold Stevie® Award in Manufacturing

September 10th, 2020 (Updated 03/24/2021)

Pricefx

We’re Manufacturing Leaders – Gold Stevie® Award In 2020 International Business Awards®    Pricefx has just been awarded the Gold Stevie® Award In 2020 International 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 a driver to help manufacturers leverage pricing opportunities within their organization, even in these extraordinary times.  “Despite the unprecedented impact the COVID-19 pandemic has had on organizations and working people worldwide, the number and quality of nominations we received in this year’s International Business Awards attests to the continued outstanding performance of many organizations. The commitment we’ve seen through these nominations...

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Friendly

Doing Good Vs. Making Profit: Do Businesses Have To Choose?

September 16th, 2020 (Updated 03/24/2021)

Gabriel Smith
Chief Evangelist at Pricefx

Can You Make a Profit While Doing Good? This article, by Gabe Smith, was originally published on Forbes.com As businesses strategize and execute on creative ways to segment customers and products, price dynamically and increase profit, some cross lines and spark moral and popular outrage. The recent headlines of price gouging of sanitizers, cleaning products and paper goods are good examples. In fact, they arrested a man a few blocks away from my house for selling these items on the street corner. He charged $5 a roll for toilet paper. Though some economists argue that there is no such thing as price...

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Realize

How to Measure Success in a Pricing Digital Transformation Project

September 9th, 2020 (Updated 03/23/2021)

Tolu Oke
Content Marketer at Pricefx

How You Can Measure Success in a Pricing Digital Transformation    Even in the wake of COVID-19, digital transformation continues to surge in popularity across all sectors. It’s forecasted to increase by 10% in 2020 to $1.3 trillion. Still, despite this sustained growth, some 84% of companies’ digital transformation efforts end in failure. It’s an alarming statistic, but one that seems less surprising when you learn that half of CEOs have no metrics whatsoever for digital transformation success!  It’s vital to remain alert to successes and failures along your digital transformation journey, staving off problems as they arise. Having clear, carefully tracked KPIs in place lets...

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Manage

Applying a Change Management Perspective to Digital Transformation 

September 8th, 2020 (Updated 03/24/2021)

Duncan Hendy

Change Management Principles to Aid Your Digital Transformation Successful digital transformation requires making fundamental changes to cope with a new, globalized, technology-driven market environment. But employees are instinctively resistant to change. Rosabeth Moss Kanter identifies ten reasons for such reluctance. These include a loss of control, uncertainty, breaking habits and routines, loss of face, concerns about competence, and the false belief that change equals more work!   The answer to a smooth rollout of digital transformation technology and processes is adopting a change management perspective. Here’s how you can make change management work within your organization.  Working with the Salesforce for Change Management  Sales teams are particularly resistant...

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Insight

The Real-Life Impact of Digital Transformation on Pricing 

September 3rd, 2020 (Updated 03/23/2021)

Tolu Oke
Content Marketer at Pricefx

What Is the Impact of Digital Transformation on Pricing? The tangible impact of digital transformation on pricing is far more profound than merely the digitization of legacy paper-based systems. Sure, automation plays a vital role, streamlining processes and boosting pricing analysts’ and salespeople’s’ efficiency. But real transformation harnesses the latest technology to redefine pricing strategies, solve customer problems, and identify new and exciting revenue-generating opportunities. Some companies can add 2% to their bottom line in the first quarter after transformation showing that there are real stakes involved.  Price optimization, management, and realization software makes pricing your company’s unfair advantage, generating pure...

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Manage

How to Reduce Overhead & Risk in the Manufacturing Industry

September 2nd, 2020 (Updated 03/24/2021)

Duncan Hendy

Reducing Overhead and Risk for the Manufacturing Industry Considerations are vast in the reduction of overhead and risk for the manufacturing industry. Especially when you’re looking at adapting your business to dynamic market shifts. We are here to help simplify the process. What Is Overhead and Risk in the Manufacturing Industry? In simple terms, overhead is the sum of ongoing business expenses not associated with the production process. Manufacturing overhead such as plant costs, salaries Selling and administrative costs Corporate salaries Risk refers to the risks incurred by manual processes, which can be broken down into three key areas. These...

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Manage

How to Unlock Pricing Potential Trapped in Minds and Excel Sheets

August 31st, 2020 (Updated 03/24/2021)

Tolu Oke
Content Marketer at Pricefx

Release the Pricing Potential Trapped in the Minds and Excel Sheets Of Your Organization Global spending on digital transformation is predicted to grow to $1.3 trillion in 2020. But, a Pricefx survey of pricing professionals found that 54% still relied on Excel as their primary pricing tool, as opposed to cloud-based software that offers far superior performance for reasons discussed in this piece.   This startling figure shines a light on the lack of investment that companies are making in their pricing infrastructures, and hints at the masses of powerful pricing discoveries that lie trapped in Excel documents and the minds of...

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Fast

The Bain Accelerators

September 8th, 2020 (Updated 03/24/2021)

Matt Dawood
Partner Marketing Manager at Pricefx

Unlock Bain’s Leading IP Powered by Pricefx Technology   A few months ago, Pricefx released its exclusive accelerators designed to supercharge your implementation. We’re now launching three new accelerators with Bain & Company, the first such partner developed accelerators from Pricefx that are unlike any solution in the marketplace today.  Companies who lose profit and often struggle with pricing can leverage pricing best practices taken from a wide variety of industries. These standardized, prepackaged solutions remove the friction and delay in getting started and seeing value fast.   The Bain Accelerators help companies improve their pricing disciplines to identify key sources of margin leakage, optimized promotion management, and gain control of frontline discounting.  Clients gain the benefit of world-class software in combination with Bain & Company’s pricing...

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Fast

Pricefx – Shortlisted in the 2021 SaaS Awards 

August 3rd, 2021

Pricefx

Pricefx Shortlisted in the 2021 SaaS Awards The SaaS Awards has named Pricefx as the winner of the category Sales and Marketing. Pricefx was the only pricing software in any finalist category making us the only pricing software to win in any category. As Patrick Moorhead, Chief Marketing Officer of Pricefx, explains, “The sales and marketing software category is highly diverse, extremely crowded and includes large, established market leaders – which makes this win so incredible for our company. We are seeing pricing software become increasingly important in the current economic climate, as a strategic way to increase revenue and drive profit....

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Manage

How to Eliminate Margin Leakage in the Manufacturing Industry

July 22nd, 2020 (Updated 03/23/2021)

Tolu Oke
Content Marketer at Pricefx

Eliminating Margin Leakage in the Manufacturing Industry   Margin leakage can have a devastating effect on your profits, leaving your “pocket price” – the amount of money you receive after all discounts and incentives have been accounted for – way below the value stated on your price list. Margin leaks range in threat level from drips to torrents, but as anyone who’s ever experienced a weeping pipe will attest, a drip can be every bit as damaging as a flood! In this article, we identify the critical sources of margin leakage in the manufacturing industry. And explore how the manufacturing...

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Flexible

Ready for Anything: Improving Business Agility Through Pricing in the Manufacturing Industry

July 16th, 2020 (Updated 03/24/2021)

Duncan Hendy

How to Improve Business Agility in the Manufacturing Industry The discrete manufacturing industry belongs to an increasingly volatile and uncertain environment, where rapid and frequent change is becoming the norm. So, it’s time for companies to seriously investigate how to improve business agility. Business agility is the ability of a company to rapidly respond to changes in the market. It’s a company’s ability to pivot and adapt, and determines whether it weathers the storm – be it changes in the market, demand, competition, supply chain, regulations, technological breakthroughs or global pandemics. But how do you improve business agility when your...

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FYI | Fast

Pricefx Raises $65 Million in Series C Funding Led By Apax Digital

July 14th, 2020 (Updated 03/24/2021)

Marcin Cichon
CEO and Co-founder at Pricefx

Dear valued Customers, Partners, Friends and Pricefx Family,  It is with great excitement and humble gratitude that I’m announcing the latest milestone in the growth of our incredible company, a $65m Series C investment from our new partners at APAX Digital, supported by our existing investors Digital+ Partners.  Given what I remember thinking and feeling in the early days of starting the company, it’s hard to believe where we are today and that we were able to raise $130m of venture capital to date.  Founding Pricefx just shy of 10 years ago, I perhaps dreamed that one day our great company would grow to become large and strong enough to achieve a moment such as this,...

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