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How Pricefx Empowers Distributors in Pricing Strategy Design

May 23rd, 2024 | 7 min. read

By Michelle Duffy

A distributor’s ability to quickly adapt its pricing strategies to evolving customer preferences, market conditions, and competitor activity can make all the difference in maintaining profitability and competitiveness. The problem? Traditionally, pricing strategy design typically requires costly technical support for coding and testing, in effect delaying a distributor’s reactivity to market forces and draining resources that could be used elsewhere.

Enter Pricefx’s Strategy Designer, a Visual Configuration tool that empowers any business or pricing role, regardless of their preexisting IT skills, to design and deploy new pricing strategies on their own through its intuitive drag-and-drop approach.

In this article, we will explore why agility in strategy design is key in fast-paced sectors like distribution, before delving into how Pricefx’s Strategy Designer works to enable distributors to design and deploy strategies seamlessly (and without sophisticated technical knowledge).

With that, let’s dive in!

 

Challenges in Traditional Pricing Strategy Design in Distribution and Why Agility Is Key

As the link between manufacturers and their customers, distributors often feel the pressure of market disruptions from both sides of the supply chain.  This vulnerability demands agility in distribution pricing strategies coupled with a competitive landscape demanding business strategies to evolve at a similar pace.

However, implementing new pricing strategies typically involves extensive coding efforts on the part of solution developers and other technical experts, limiting access to a select few within the organization. Additionally, deploying new strategies requires testing with sample data to ensure the accuracy and effectiveness of those strategies, posing time-consuming logistical challenges of its own.

These challenges not only consume valuable time and resources but also hinder a distributor’s ability to respond quickly to market changes.

Luckily, traditional pricing strategy design isn’t the only option distributors can leverage in their pricing operations to ensure competitiveness, and this is where Pricefx’s no-code Strategy Designer tool comes into play to help.

Benefits of Pricefx’s ‘No-Code’ Pricing Strategy Designer for Distributors

Pricefx’s Strategy Designer, a use case of Visual Configuration, is a visual pricing design tool that redefines the skillset required for setting up new pricing strategies and how long this process takes. Learn more about Pricefx’s Visual Configuration and Strategy Designer in the handy video below

 

With its no-code approach to configuration using an intuitive drag-and-drop editor, Strategy Designer significantly reduces a distribution company’s reliance on specialized coding skills to get its new strategies up and running.

Instead, Strategy Designer democratizes the pricing strategy design and deployment process to enable anyone, from business analysts to pricing managers, to take the lead in new strategy development.

Distributors can expect to look forward to a few key benefits when using Strategy Designer, among which include:

  • Faster Strategy Design: Using Strategy Designer’s intuitive visual design interface, distributors bypass the need for costly technical resources when rolling out their pricing strategies, from cost-plus to competitive pricing, and ensure quick reactivity in their pricing to a dynamic competitive landscape.
  • Improved Pricing Effectiveness: Strategy Designer allows distributors to fine-tune their pricing strategies with ease without the support of solution developers. Instead, pricing managers can head the testing process themselves by previewing their pricing strategies live and testing their effectiveness with instant visual feedback on the impact of their configuration changes.
  • Instant Deployment: After designing the pricing strategy for testing, a pricing manager can easily deploy its code in the environment they choose with a click of a button, to be immediately put into effect across their Pricefx system.

 

Now, what defines success after using Strategy Designer? Distributors leveraging Strategy Designer for their new pricing strategies can track progress namely through revenue growth and cost savings KPIs (Key Performance Indicators).

Through an efficient pricing strategy design and deployment process, distributors significantly reduce downtime in their reactivity to the market, resulting in more captured profitability opportunities. And, with extensive IT resources no longer needed for setting up new pricing strategies, companies should expect significant savings in labor expenses.

How Does Strategy Designer Work?

As we’ve seen, Pricefx’s Strategy Designer empowers distributors to design and implement their new pricing strategies quickly and efficiently with a no-code approach to configuration, resulting in reduced IT overheads and increased revenue growth.

Now, how exactly can the tool be used in practice? Let’s break this down step by step.

Image-Price-Strategy-Designer-Screenshot

Step 1: Duplicate, or Build From Scratch?

To begin, distribution pricing managers can choose to design pricing strategies either by modifying existing pricing formulas or creating entirely new ones from scratch.

Duplicating and Amending

To amend an existing pricing formula, a user would duplicate an existing strategy in their library and make a few simple adjustments.

Because strategy components are organized as drag-and-drop ‘puzzle-like’ pieces, making the amendment would simply involve adding or deducting relevant elements where needed (for example, taking a cost-plus pricing strategy template and amending its markup ‘block’ to 1%).

Building From ‘Scratch’

To create a pricing strategy from scratch, the process is just as intuitive, with a few extra steps along the way. On the same drag-and-drop visual interface, the user would build out a custom strategy by defining its data lookup parameters, attributes, and calculation logic, and put each of these ‘puzzle’ pieces together in the same visual interface.

Keep in mind that as Pricefx offers several out-of-the-box strategy types to choose from, users rarely have to start from square one when designing new strategies.

 

Step 2: Real-Time Testing Before Execution

After a user assembles the new pricing strategy in Strategy Designer, they can test it before implementation through the tool’s Live Preview feature. This involves choosing a few products from the data lookup to observe their calculations under the new strategy, ensuring optimal performance in the future.

 

Step 3: Deployment Across Pricefx

Once the new pricing strategy is working as it should, it’s time for deployment. This step is as easy as selecting the new strategy and defining its priority level in the product hierarchy (e.g., whether the strategy will be applied globally or locally).

After setting up this dependency logic, the user can immediately deploy the new strategy across its entire Pricefx system.

And, with that, distributors can sit back and benefit from new pricing strategies that accurately reflect the state of the market.

 

Discover More Opportunities to Stay Ahead in Distribution With Pricefx

For companies in distribution, Pricefx’s Strategy Designer tool presents an opportunity to move away from time-consuming and costly pricing strategy design and deployment and put the process back into the hands of pricing experts. With its no-code approach, real-time testing capabilities, and seamless deployment features, the platform arms distributors with the agility they need to thrive in today’s competitive marketplace, enjoying increased profitability and customer satisfaction as a result.

In this article, we highlighted the inherent benefits of a no-code approach to pricing strategy development that Pricefx’s Strategy Designer offers. However, this tool represents just a fraction of the solutions Pricefx offers distributors to address the challenges in their industry and stay ahead of the curve.

Curious to learn more about how Pricefx can help distributors like yourself? Consider checking out our comprehensive article on the Top 5 Pricing Features Pricefx Offers Distributors below:

CTA-The Top-5-Pricing-Features-Pricefx-Offers-Distributors

 

Happy Distribution Pricing from Pricefx!

Michelle Duffy

Industry Expert in Distribution , Pricefx

Michelle Duffy is an Industry Expert in Distribution with Pricefx, based in Minnesota, USA. Prior to working with Pricefx, Michelle spent 15 years working at one of America’s largest High-Tech Distributors as a Strategic Pricing Manager of a multi-billion-dollar portfolio. Michelle is an Innovative, passionate, results-driven pricing professional with a strong ability to plan and implement a high level of Pricing Strategy activities to generate new sales and increased margins. On the weekends, you will find Michelle with her family at a hockey rink in the winter and at the lake in the summer.