New Pricing Software? The 3 Best Implementation Options

You probably already know that pricing software is a powerful tool with many benefits. It helps with tasks like analyzing data, implementing dynamic pricing, optimizing prices, and automating adjustments in price lists. Heck, it even provides insights into the potential impacts of those price changes before they take effect. What’s more, new pricing software is the best leverage available to increase your business profits. It allows a company to execute more advanced strategies across their entire product range, rather than dealing with just a few selected items or services at a time. This automation saves a significant amount of time and resources compared to manual methods. But for all its remarkable features, there is a common and challenging question that customers often ask: “I understand there are three methods for implementing pricing software: hire the pricing software vendor, work with a partner, or become totally self-sufficient – how do I choose the right path?”

It is a question that many find frustrating because the answer is not a simple one. It can often even be a blend of all three approaches. Here at Pricefx, as a leading cloud-native pricing software company with happy customers using all three methods and with consumer satisfaction as one of our core values, we would like to challenge ourselves to take part in the conversation of helping you choose the right pricing software pathway for your business.

Let’s dive into the details in an imaginative way.

Imagine you are a chef, and pricing software is your special set of knives. You can use them to create a culinary masterpiece, but it helps to know how to wield them effectively. The choice you make – whether to hire the vendor, work with a partner, or go it alone – depends on your expertise and your objectives. Let’s delve into the world of pricing software via this culinary analogy and explore these three distinct approaches.

1.  The Pricing Software Vendor’s Kitchen

The first approach, and arguably the easiest, is to hire the pricing software vendor to run the show for you. In this scenario, you are more of a restaurant owner than a chef. You know what you want, but you do not have the time or inclination to make it from scratch.

The Convenience Factor

Using the vendor’s service is the culinary equivalent of ordering takeout. The pricing vendor’s team does the heavy lifting for you. They’re responsible for configuring the software, setting the pricing strategies (but bear in mind, they can’t set your business goals for you – you’ll have to mix those ingredients by yourself), and managing updates. For you, it’s a hands-off approach, perfect for businesses with limited resources or expertise.

The convenience of this model can’t be overstated. You don’t need to be a pricing expert, and you don’t have to invest extensive time in learning the intricacies of the software. Instead, you can focus on the big picture of your business. You let the vendor’s chefs work their magic while you manage the restaurant.

A Recipe for Success (Or Not?)

This approach works well for businesses that value convenience and speed. Vendors have the experience and expertise to set up the software and optimize it for your unique needs. If you’re a startup or a small business without a dedicated pricing team, this can be a cost-effective solution (if you’re not choosing enterprise-level pricing software that is!)

However, it comes with limitations. Like relying on takeout for every meal, you miss the experience of cooking, innovating, and making your dish truly your own. Your pricing strategies might be effective, but they lack the unique flavor that comes from a deep understanding of your business’s nuances.

2. Working with a Master Chef (A Pricing Partner)

In the second approach, you decide to work with a partner, who is like a skilled sous-chef in your kitchen. You’re still the chef-owner, but you’ve got a professional by your side to guide you and take some of the workload off your plate.

The Sous-Chef Approach

Working with a partner is akin to collaborating with an experienced hands-on chef. They come with extensive knowledge of pricing software and its applications. Instead of relying on the vendor’s pre-made dishes, you’re cooking together, crafting unique recipes that align with your specific needs and preferences.

This approach provides a balance between hands-on involvement and expert guidance. Your partner can assist in configuring the software, setting pricing strategies, and offering insights into market dynamics. It’s like having a culinary mentor who helps you master your techniques and develop your signature dishes.

The Best of Both Worlds

For businesses that want control over their pricing strategy and the benefits of expert assistance, working with a partner is an excellent choice. It is a perfect fit for those who need a deeper understanding of the software and its functionalities.

The downside? Well, it is not quite as hands-off as hiring the vendor. You need to invest time in the partnership, ensuring that you communicate your needs and expectations effectively. It is more akin to owning a restaurant with a skilled sous-chef – you lead the kitchen, but you have an expert at your side to enhance the culinary experience.

For those wanting to learn more about why working with a pricing software partner can be beneficial, check out this handy article below:

3.  The Chef’s Hat (Pricing Self-Sufficiency or DIY)

The third approach is for those who want to take full control of their culinary journey. It’s like donning the chef’s hat, stepping into the spotlight, and crafting your recipes from scratch. In this case, you choose to be completely self-sufficient for your pricing needs.

The Self-Sufficient Chef

Being self-sufficient means taking the helm in the kitchen. You understand pricing software in-depth and have the expertise to configure it, set pricing strategies, and manage every aspect of the system. It’s the equivalent of running a Michelin-star restaurant where you not only craft the menu but also grow your vegetables and raise your livestock.

This approach is the most hands-on and provides the highest level of control. If you have an in-house team of pricing experts or are committed to developing that expertise, self-sufficiency allows you to fine-tune your strategies to the last detail. It’s perfect for large businesses or enterprises that have specific, intricate pricing requirements.

But of course, it’s not possible to get there overnight and nor should you be expected to. You will need to invest time and energy in training your people in all manners of your chosen pricing software. To check out all the benefits of completing Pricefx training (including building pricing self-sufficiency in your organization), this article below outlines 7 key advantages of quality price software education:

Pricefx will allow for use of the pricing software without prescriptive input from us as the vendor should your company prefer. Get your staff involved in whatever training you wish to make any changes your organization requires to become pricing self-sufficient.

 

The Cost of Independence

While self-sufficiency offers the most control, it also demands the most investment. It requires a dedicated team with pricing knowledge, a commitment to training, and a continuous learning curve. There may be higher initial setup cost, and you possibly need to invest in the right people and allocate resources to maintain and update their skills and the software continually.

However, it can be worth it for those who want to create unique pricing strategies tailored to their specific industry, target audience, and business model. Just like a celebrated chef who creates signature dishes that draw customers from far and wide, your pricing strategies can become a competitive edge that sets you apart.

Which Approach Is Right for You?

Much like choosing the right culinary approach, determining the ideal pricing software strategy depends on your business’s size, objectives, and expertise. It’s a recipe that you need to craft thoughtfully and individually (you might choose to mix and match approaches – and that is okay too – after all, who knows their business better than you do?), considering the key ingredients at your disposal:

• Size and Resources: Consider the size of your business and the availability of resources. Smaller businesses with fewer pricing experts may find the vendor’s approach convenient, while larger enterprises might opt for self-sufficiency but that will depend on your company’s own internal organizational DNA.
• Expertise: Evaluate your team’s knowledge and expertise in pricing. A team of seasoned pricing professionals can maximize the benefits of self-sufficiency, while those who lack in-depth pricing knowledge may benefit from a vendor’s support or a partnership.
• Control vs. Convenience: Weigh up the level of control you want over your pricing strategies. Do you prefer a hands-off approach with the convenience of a vendor, a balanced partnership, or the complete control of self-sufficiency?

Ultimately, just as a chef tailors each dish to suit the customer’s palate, you need to customize your pricing strategy to align with your business objectives. The decision on which way to go with your pricing software experience might change as your business grows or evolves, just as a chef adds new recipes to their menu. One thing is certain, though: with the right approach, you can master the art of pricing and create a delightful experience for your customers.

But like most things in business, it may eventually come down to a financial decision. In which case, you will need to know how much quality pricing software costs to start to ‘ballpark’ your numbers.

To begin that learning journey, check out our handy article below on the cost of pricing software: