Here at Pricefx, as a leading cloud-native pricing software company, we understand that the foundation of any successful business strategy starts with price setting. Yet, traditional manual-based pricing can present challenges that make setting the right prices consistently across a maze of customer, product, and channel combinations a near-impossible task. While you might be able to do this once or twice, with pricing software, you’ll manage it perfectly every time.
To help, in this article we break down key ways enterprise-level business can enhance their price setting processes using Pricefx software solutions, concluding with steps to consider before taking them on.
How Pricefx Helps With Price Setting
From price list automation to analytics to price harmonization, Pricefx offers a comprehensive suite of tools that enable your company to transform its price-setting strategies. In this section, we’ll break them down one by one.
1. Automated Pricing Strategies
For businesses operating in industries where price points across channels, products, and customers are continuously subject to change, the heart of Pricefx’s price setting lies in its automation of pricing strategies, as it streamlines a once scattered and error-ridden pricing process.
In industries with a staggeringly high volume of SKUs, such as discrete manufacturing or distribution, applying a consistent pricing strategy is key to ensuring accurate pricing for new and existing products. Meanwhile, in retail, automated pricing strategies enable businesses to easily enforce strategic family groupings across products, while accounting for competitor and market changes, to promote greater customer acceptance and higher margins.
Within the Pricing Accelerator, businesses can choose among the (no-code) pre-built pricing strategies available for deployment. The following strategies are available out of the box:
- Competition Based Price
- Average Competition Based Price
- Maximum Competition Based Price
- Recommended Retail Price
- Cost Plus
- Price Increase
- Kit Pricing
- Anchor Pricing
What’s more, our no-code Strategy Designer can be used when any changes or adjustments are required.
A user can review and edit the formula that defines their chosen pricing strategy directly in Strategy Designer’s Live Preview function, offering the flexibility to test the strategy before its implementation and the ability to easily bring in any data to use in your pricing strategy.
2. Transparent Analytics
When wading through a sea of pricing data in Excel, actionable pricing insights to support better decision-making can be as accessible as diamonds in the rough.
Visual analysis tools like our pricing waterfall allow companies to see the impact of their pricing decisions at any level of aggregation, or down to the transaction level. In addition, businesses can leverage automated data gathering and advanced analytics in Pricefx to gain visibility into the performance of their pricing strategy across their KPIs of interest.
For example, by leveraging customer and product insights from analytics KPIs, companies in diverse industries such as process manufacturing can identify and eliminate underperforming areas and improve long-term visibility in contract renewals.
3. Dynamic Price Changes and Simulations
In Pricefx Price Setting, companies are empowered to automate as many aspects of their pricing strategy as they need into their price calculation logic and analytics, incorporating the market factors influencing cost-to-serve, among other pricing KPIs specific to their industry.
For example, distributors can easily modify their pricing in response to fluctuating freight costs and crude oil prices in their price lists in real time.
Similarly, in the case of large-scale retailers spanning numerous locations, the platform enables automated pricing updates for hundreds of thousands of items across their physical stores and e-commerce sites. Responses to dynamic market forces can be as quick as real time, ensuring businesses are always keeping an eye on competitors and costs, even after going home for the day.
For industries like packaging or chemical manufacturing, where prices are tied to publicly available material indexes, Pricefx automates monthly price recalculations for customer price lists and in turn frees up time for teams to focus on pricing strategy, not day-to-day processes.
4. Automated Workflows and Approvals
Sales and pricing teams are often held back by inefficient approval processes that prevent them from quickly reflecting market-driven and competitive factors in their price lists and achieving shorter, more profitable sales cycles.
Pricefx automates this delegation of authority by enabling businesses to define when a pricing decision requires escalation for approval or when it can be passed on to customer without intervention.
For example, when price adjustments are suggested based on competitive pricing or cost-to-serve factors, a portion of those proposals are automatically routed for managerial approval based on a set of pre-defined guardrails. Sales teams following this guidance can give a customer a response in real time, shortening the sales cycle to just minutes.
5. Price Alignment Across Channels, Regions, and Products
When setting and managing prices in manual tools like Excel spreadsheets, achieving alignment across channel, product, and customer pricing segments can be a challenge when facing version control issues, calculation errors, and low visibility due to the sheer volume of raw data.
For example, in fast-paced industries like retail and e-commerce, lacking a standardized approach to align prices denies companies the opportunity to identify their most profitable products and harmonize their pricing within and across sales channels.
Pricefx offers easy configurability of product families and their dependencies to ensure the most profitable products remain strategically positioned in the pricing ladder, no matter how often prices shift or how many products or variables are involved. What’s more, e-commerce companies can apply a pricing scheme to drive their offline and online prices in dynamic tools like Live Price Grids (LPG) to enable harmonized channel pricing and avoid customer abuse of price discrepancies.
Price alignment is equally critical in sectors like manufacturing, where fluctuating production costs and market volatility require a constant renegotiation of prices at a global scale. Organizations can explicitly define relationships between products, customer segments, and regions, which ensures that a single pricing decision can cascade throughout price lists. Alternatively, companies can use pricing corridors and workflows to maintain the discretion of sales teams while upholding consistency in channel and product strategies.
6. Seamless Data Integration Between Internal and External Systems
Price setting that occurs in standalone systems and tools inevitably gives rise to process inefficiencies and misalignments in pricing across finance, pricing, and sales teams. Even with effective pricing tools, without integration, informed decisions can become trapped, and the data required for those choices can quickly grow stale.
Pricefx’s IntegrationManager (IM) enables easy data transfer between internal and external systems (i.e., SAP, CRM, or third-party applications), allowing companies to have a single source of truth for their pricing decisions and execute their pricing strategies with data-driven precision. Our platform can support 100+ standard APIs with prebuild connectors for many CRM, ERP, and Ecom platforms, even for legacy systems. Platform Manager supports secure file integration with CSV, XLSX, and XML.
The challenge for most businesses isn’t a lack of data, but a way to bring it all seamlessly together and translate it into effective decision-making.
What to Keep in Mind Before Getting Started with Pricefx’s Price Setting
When preparing to use Pricefx’s price setting capabilities, companies should take the following steps into consideration:
- Prepare Your Data: Your company should identify where their pricing data comes from, who is responsible for it, and take pre-emptive measures to ensure it’s in good shape for implementation.
- Map Out Your Pricing Process: Next, document your organization’s pricing process and start considering what your delegation of authority looks like. Who are the key decision makers and collaborators involved?
- Secure Budget, Timeline, and Buy-In: In the planning period, make sure your organization has a well-defined budget, a realistic timeline, and has secured executive and user buy-in. This not only supports a smoother implementation but also foster greater confidence in the new pricing solution once it’s live.
If these factors are effectively addressed in the beginning, your company has already laid the groundwork for taking full advantage of Pricefx solutions, including its price setting capabilities.
Next Up: Find Out If Pricing Management Software Is Right for You
In this article, we outlined ways enterprise-level companies can transform their pricing setting processes with the help of Pricefx solutions. If the benefits we’ve called out here resonate with you, consider diving deeper into how pricing management software serves businesses like yours in our article below:
