Pricing strategies are crucial for the success and profitability of businesses in the manufacturing industry. However, traditional pricing methods often fail to provide the speed and precision needed to match the ever-changing market conditions and business goals. The old-fashioned approach of relying on manual estimates and complex spreadsheets for pricing is quickly becoming obsolete,making way for an innovative approach of data-driven pricing where manufacturing companies can compare themselves with others in the industry, use analytics to examine customer and product KPIs (Key Performance Indicators) and adjust prices effectively across regions.

Pricefx has been a leader in delivering cloud-native, automated, real-time pricing processes that are tailored to the specific needs of our customers for over 10 years now, working with numerous manufacturing clients. Our main goal is not only to improve their existing pricing strategies but also to provide manufacturing businesses with the tools and insights they need to succeed in the future as well. By using the power of data-driven decisions and automation, our aim is to enable manufacturing companies and help them make pricing decisions based on performance visibility and forecasting, thereby creating a strong basis for lasting growth.

In this article, we will explore 3 key ways that manufacturing companies can leverage the data-driven capabilities of Pricefx’s pricing software solutions and derive enormous business benefits from the improvement of pricing visibility and forecasting accuracy.

So, let's get started and kick off the pricing journey with Pricefx’s unique benchmarking capability!

Imagine a Pricing Manager without a clear view of how their company stacks up against industry peers. Pricefx eliminates this blind spot by providing access to  Pricefx Plasma, a powerful benchmarking tool. Plasma grants benchmarking of pricingprocesses and deal performance with those of other discrete manufacturing companies. This data, segmented by region, product type, and other relevant factors, allows for comprehensive comparisons against industry averages.

With Pricefx Plasma, you can identify areas for improvement and uncover opportunities to optimize pricing strategies. No more relying on anecdotal evidence or generic benchmarks! Pricefx prioritizes data security, ensuring all customer information used in Plasma is anonymized and protected through double-blinding techniques.

Here are some key metrics you can benchmark with Pricefx Plasma:

• Deal Velocity
• Total Revenue
• Percentage of Accounts with Negative Margins
• Percentage of Products Required to Reach Revenue Targets
• Deals Outside Discount Guidelines

By leveraging these insights, you can make data-driven decisions that propel your company towards industry leadership.

To learn more about Pricefx Plasma and how you benchmark your company's performance across 25+ key metrics, check out this handy video:

2. Actionable Insights from KPIs

Success in pricing goes beyond just the bottom line. While profit and gross margin are crucial, they serve as outcomes rather than direct indicators of effective pricing. Pricefx empowers you to align your pricing actions with strategic goals and drive improvements towards those objectives.

For instance, consider a manufacturer aiming to increase market share in specific product segments without compromising margin. Pricefx helps you assess progress towards this goal. Even an 8% increase in sales units without margin erosion signifies a successful step in the right direction, especially if this growth is unprecedented for the company.

Focusing on the right KPIs is essential.

For example, in a practical sense, discrete manufacturers can use Pricefx’s Actionable Insights to bolster bottom line profit by:

• Identifying customer churn trends before they impact the bottom line
• Measuring and compare price performance across market segments and have the system automatically notify you the price of a particular product seems to be going on a downward trend for one particular segment
• Comparing volume/revenue/margin growth from one period to another and raise an alert when it goes below a certain threshold.

Identifying underperforming products or categories is crucial for taking corrective pricing actions. Pricefx provides detailed insights into areas requiring improvement, enabling you to prioritize these areas and optimize pricing programs for maximum effectiveness.

What's more, Pricefx’s Actionable Insights can help you to prevent margin erosion in your manufacturing business and streamline your supplier cost management with automated pricing performance visibility to give clear line of sight to your company’s profitability.

Be sure to check out the video below on Pricefx’s Actionable Insights tool which can be used to monitor cost changes (spare parts, suppliers, products with frequent price changes etc.) that can be easily missed in your price list updates. Use this or a tool like it to ensure that your costs are kept up to date and are passed on in your company’s pricing.

Imagine the impact of outdated price lists. Even minor pricing adjustments can have a significant effect on profit margins. An outdated price list can easily eat on the margins of an organization and can mean that customers are going to stop buying your products if you are no longer market competitive.

Pricefx eliminates this risk by enabling regular updates to your price lists. This proactive approach ensures you capture the full value of your products and maintain a competitive edge.

Pricefx facilitates swift price adjustments in response to:

• New product launches
• Changes in production costs
• Shifts in competitor pricing
• Identification of low-margin products

Automated notifications improve margin performance, gain market share by being more nimble on the price setting and updating as market conditions evolve, ensure prompt recalculations aligned with your pricing strategy, minimizing delays, and streamlining pricing processes.

What’s more, Pricefx's Price List Impact Simulation (see the video here) empowers you to evaluate the potential consequences(e.g. customer/market impact in volume/revenue/margin based on measures such as price elasticity) of price changes in advance, allowing you to make informed decisions that align with your business objectives.

A Case Study in Success

Consider a growing electronics manufacturer facing increasing challenges in manually recalibrating list prices as their product offerings diversify and they enter new markets. Pricefx integration streamlines their pricing processes, enabling them to seamlessly adjust list prices in response to various market shifts.

Furthermore, Pricefx's price list impact simulation empowers them to proactively anticipate and navigate market fluctuations, ensuring optimal pricing strategies that support sustained growth.

This Pricefx  ‘looking into the pricing crystal ball’ capability really comes into its own for companies that are looking for effective ways to set and manage prices for new or recently released products.

To learn more about effectively managing the pricing of your new product offerings, check out the useful article below:

Pricefx understands that a powerful software solution is only half the battle. We are committed to providing a seamless user experience and ongoing support to ensure you maximize the value of your investment. Here is how we go the extra mile:

• Intuitive Interface: Pricefx boasts a user-friendly interface that minimizes the learning curve. Your team can be up and running quickly, focusing on strategic pricing initiatives rather than wrestling with complex software.
• Comprehensive Training and Onboarding: We offer a robust training program and a Generative Artificial Intelligence (AI) powered Knowledge Base, both designed to equip your team with the knowledge and skills they need to leverage Pricefx effectively. Additionally, our dedicated onboarding specialists ensure a smooth transition and provide ongoing assistance.
• Exceptional Customer Support: Our knowledgeable and responsive customer support team is always available to answer your questions and address any challenges you might encounter.
• A Collaborative Partnership: Pricefx views itself as an extension of your team, not just a software vendor. Through ourselves and our global Advantage Partner Network, we actively collaborate with you to understand your unique business needs, integrate your software as quickly and as seamlessly as possible and develop a customized pricing strategy that aligns with your long-term goals.

The Pricefx Advantage: More Than Just Software

By choosing Pricefx, you gain access to not just an innovative software solution, but also a team of dedicated professionals committed to your success. We provide the tools, support, and expertise you need to transform your pricing strategy from a reactive function to a proactive driver of growth.

Ready to Unlock the Power of Data-Driven Pricing?

Contact Pricefx today to talk to an expert and discover how our comprehensive solution can empower your discrete manufacturing business to achieve sustainable profitability and industry leadership through data-driven pricing strategies.

Or to learn more about Pricefx highlights the user experience and ongoing support to both sales and customers, check out the article below:

Meanwhile, Happy Pricing!