Resubscribe or Change Pricing Vendors When Your Contract Ends
October 5th, 2022 (Updated 03/09/2023) | 11 min. read
By Jose Paez
There is something truly satisfying about finding the perfect pricing software solution that meets every need of your company. You have been perfectly content, ecstatic even, with the pricing software you have – until now. Just recently, the way you do business has changed and you are wondering if you should resubscribe with your current vendor when your contract draws to a close, or look elsewhere to plug a potential pricing functionality gap that you may see coming on the horizon? So, in that light, we have decided to take a closer examination on what to do when your pricing software contract is ending; do you stick with the tried-and-true of what you know, or do you discover greener pricing software grass on the other side of the pricing technology playground?
Over the last decade at Pricefx, we have been working together with business organizations just like yours to assist them in realizing their unique pricing niches with the use of innovative pricing software technology.
As such, Pricefx is perfectly positioned to assist you in determining what factors to consider when choosing whether to decide on a new pricing software provider or to stick with an ‘if it ain’t broke – don’t try to fix it’ approach with your current provider.
Let’s dive in and examine why you should stay with your current pricing software provider, why you should move on and five red flags to watch out for that may help you decide ahead of time.
Why Should You Stick with Your Current Pricing Software?
Nine times out of ten, large scale enterprise businesses will usually stick with their current pricing software vendor when the contract reaches its expiry date.
Installing and implementing pricing software takes a lot of commitment in terms of time, effort and of course, and most naturally, expense.
Switching pricing software vendors is not simply like going to Google and downloading the latest version of Chrome. In order to change to another provider, you will need to consider;
- Making a New Business Case for a New Pricing Software Vendor
- Reallocating IT resources for another lengthy implementation process
- Appointing a New Team to Be Involved in the Pricing Software Implementation Process including appointing an Ultimate Decision Maker to drive the process in your organization
- Rebooting change management (again)
- Balance the New Implementation Process against Other Ongoing & Competing Priorities of your IT staff
Do you really want it to go through those processes again so soon?
BUT, there is one critical question to ask yourself and answer it honestly to know if changing pricing software providers is worth the pain.
The only question you need answered is this:
“Have you been able to capture/leverage your pricing as you were promised/expected with your current solution?”
And if you have answered ‘no’ to that important question above, I will bet you want to consider changing because you’ve discovered that you are not getting the value you expected from your current pricing software.
However, a lot of companies do not discover the lack of value they are receiving until after at least one or more extensions of the initial contract, as so much time, effort, resources, and money have been invested into making it work the first time around.
Learn More Here About the Costs of Pricing Software
Why Should You Change Your Pricing Software Vendor?
It’s all about value and how your organization perceives value.
If value for your company is all about identifying new business and market opportunities from your pricing tool, and you are not receiving that, a time for a change may be imminent.
Likewise, if you are using your pricing software to drive more volume and lower your production costs, and you’re not getting the results you anticipated, it’s another sign that the time to consider a new software provider is coming soon.
Has your pricing tool empowered your team to spend less time on manual updates and more time on strategically locating more profit opportunities you never knew you had? If not, that’s a red flag.
Or in our current merger-rich business environment, maybe your organization has acquired a new auto parts company that has more than 150 000 SKUs to update price each month. There is no way your current pricing system can do it. You’re in need of an urgent technology upgrade of your pricing software to get that task done in hours rather than weeks (that’s value right there!) before your margins fall through the cracks of extended price update time.
Whether it is due to the impact of technological change on business practices or becoming prescriptively proactive in keeping up with rampant inflation, supply chain problems and price fluctuations, companies are increasingly turning to pricing software with more powerful pricing insights than have had previously to manage their prices.
Or they have simply not been receiving the value they were promised or expected from their current pricing software solution.
Just like the pain you feel from an old car that is continually breaking down or spending much of its life in the mechanics’ workshop, repairs or even a new car is the smartest move of all.
Pricing software is similar. The longer you wait to make the move, the painful costs of inaction continue.
Yes, we know changing can be a huge time and money investment, but if you’ve already done the math and you are not receiving the pricing power you believed you would receive from your current pricing technology, it may be time to consider swallowing the bitter ‘time to switch’ pill.
As a pricing professional, if you have not had a conversation with your boss that your current pricing solution is not delivering the value you expected (in whatever form that may be for your business), the longer the pricing pain may endure.
5 Red Flags to Beware of Before Your Pricing Software Contract Expires
If you’re currently on top of your pricing game, without a doubt, you’ll be aware that you will need to be proactive in keeping track of the pricing functionality gaps of your current pricing system as business conditions and your own unique company circumstances alter.
And it may not always be about your pricing as such. It may also be about simplifying your business processes, streamlining your workflows and approvals processes, switching to digital and electronic messaging and document transformation rather than sending emails and working in Excel, or reducing quote times from days to minutes.
Identify your functionality gaps and that will be guiding light if you need to consider a change or not.
Before you commit to a change of pricing software vendor, ask your current provider if they can accommodate the changes you need in the extension of your next contract.
You never know – as your current vendor probably has hundreds of clients on their books, they may have made the pricing software change that you are requesting for another client previously.
Let’s look at some red flags to watch out for that may signal it is time for you to change your pricing software vendor.
1. You are not receiving the value you anticipated
As we mentioned above, whatever value means to your business, if you’re not getting it, the chances are that the winds of potential change are blowing through your pricing department.
A good pricing software partner for your business usually welcomes the opportunity to map your services and associated costs to the value derived by the business in performing their activities across the enterprise value chain. Be sure to understand the entire “value” of the partnership and costs beyond the technology, including licensing, support options, return-on-investment (ROI), total cost of ownership (TCO), experience and skills, response times, etc.
If you are missing out on what you expected – red flag number one.
2. You achieved your ROI – and your pricing software partner suddenly ‘disappears’
Everything until you have reached your ROI has been going smoothly and without a hitch. It’s been a great partnership with your pricing software partner to date, but once you hit your ROI number, they fell off your radar and the customer service and support dried up. The sound of the crickets is deafening.
Sure, it’s great to reach the point of that ROI but no company invests in anything hoping to just get their investment back. This is about growth; profitable growth, the expectation is to reach new heights, open new opportunities, drive change in the market and be the leader of that change. A great pricing software vendor will be with you over that long haul journey to ensure the value does not stop once the expected ROI is achieved, they will stick with you to provide that long term growth.
If you have not been able to grow new revenue, new streams for that revenue, new areas of opportunity, or develop insights into potential new outreach for your company, red flag number 2.
3. Slow Support / Response Times
An often-heard complaint heard from pricing software clients is a lack of responsiveness to their problems from their vendor. This issue is worthy of both attention and measurement.
Have your pricing team track the specific support issues and the corresponding response times from your pricing software provider. Is it over or above the industry average? If you are unsure, balance it against the support you have experienced in the past.
Does your pricing software contract include details about the service level agreement? A quality pricing software partner will usually offer a structured process for project management and support.
If you find yourself with an ever-growing list of requests, items that you would like your vendor to look at and get back to you with some follow up, then it might be clear you are seeing red flag number 3
4. No Relationship at All /Lack of Customer Success Engagement
If your pricing software vendor only contacts you if there is a problem, rather than being engaged and enjoying your business success with you is another potential red flag to be wary of. Addressing a complaint is a starting point but staying engaged with you is critical.
Do you have the right contacts with your pricing software vendor to ensure a healthy and strategic relationship? Is your main point of contact an account or customer success manager (who is incentivized to keep you happy), or a sales representative (who is incentivized to move on and find new customers)? Are you getting what you expected from your vendor in terms of customer support? Would you prefer more overall check-ins, or more high-level consultations?
Many pricing software customers choose to change their vendor because they felt neglected and had little to no relationship at all with their partner.
5. Your Pricing Software Vendor is Not Updating Their Offering
Just as your business climate is continually changing and evolving, so too should your pricing software vendor be looking to make technology upgrades and increase functionality to match the needs and rate of change of the market conditions. If they are not, add this to your red flag list.
It is important to consider your pricing software solution’s current state and its future potential — whether that is good or bad. Ensure you understand the new release and maintenance schedules. Be confident with a pricing vendor who provides clear, scheduled (not consistently delayed) updates.
Furthermore, your vendor’s service and development teams should be dedicated and effective in handling pressing inquiries and bug fixes promptly.
Remember, action and evidence are always better than promises.
Identifying Pricing Software Done Right
Now you know the reasons to stick and stay with your current pricing software or move on when it is time to resubscribe, plus a bonus 5 red flags that can forewarn of a necessary change.
With inflation at 50-year highs and a recession a high likelihood on the horizon, companies are willing to do more and move faster to implement a price change to recover cost increases. A good quality pricing solution like that offered by Pricefx that is nimble in reacting to cost fluctuations, automated and therefore, reducing human intervention in executing changes can be critical to your business success.
If your business is ready to consider exploring different pricing software options that will fit your company’s needs, this article below can help you make your choice;
However, if your business has already narrowed down your choice to Pricefx as one of the likely candidates that you would like to talk to directly, one of our experts is standing by. Click on the link below to get started.