What is Value-Based Pricing? Benefits, Drawbacks & How to
What is Value-Based Pricing? Benefits, Drawbacks & How to The power of a value-based pricing strategy to boost profit and revenue has caught the attention of pretty much every organization. But actually, adopting it is a different story. For many, the jump from cost-plus to value-based is just too wide. Will it be worth the effort? At Pricefx, we’ve spent the past decade helping companies successfully make the jump and we’ve seen how their value-based strategy has delivered incredible ROI, so we thought we’d share some of our expertise in value-based pricing with you. In this article, we’ll take a...
Dynamic Pricing Strategy – Tips & Examples + Pros & Cons
Dynamic Pricing Strategy – Tips & Examples + Pros & Cons When your customers visit your bricks-and-mortar or online store to purchase one of your products, most of the time they will want to know the exact prices of your products beforehand. However, if you are providing services like that of doctors, lawyers, accountants, plumbers, or electricians, setting an exact price is not a simple task. Prices vary because of multiple factors, like time, length and complexity of the service provided. That is a form of dynamic pricing and it certain cases it can be used for pricing your products...
Economy Pricing Strategy: What Is It & When to Use It?
Economy Pricing Strategy: What Is It & When to Use It? You have low production costs for your company’s products, but you are still struggling to meet your organization’s sales targets? It could be that that you need to consider an Economy Pricing Strategy. Also widely known as ‘Economic’ Pricing Strategy, this concept of pricing is extremely useful for companies that are keeping their overheads low. It enables businesses to price goods low and gain revenue based on many customers purchasing those low-priced goods. But if your business does not enjoy a lion’s market share or strong enough brand awareness,...
Explaining Artificial Intelligence vs Machine Learning in Price Optimization Software
Explaining Artificial Intelligence vs Machine Learning in Price Optimization Software Setting the right price for your company’s goods or services is always a tricky question to solve. What pricing strategy your business adopts will depend on your business objectives. One part of your business may seek to maximize profitability on each unit sold or on protecting your overall market share, while another sector of your company needs to access a new market or to grow an existing one. Moreover, different scenarios might coexist in your company for different products or customer segments. If that’s the case, the time might have...
What Happens To The Pricing Team When You Get Price Management Software?
What Happens To The Pricing Team When You Get Price Management Software? Buying pricing software can be a scary prospect. It’s a big investment and requires a comprehensive change management plan to drive adoption. Once you mention that you might be getting pricing software, no doubt you’ll have questions from members of your team wanting to know what will happen to their roles in the company. And if you lead the team you’ll probably want answers to those same questions At Pricefx, we’ve spent the last decade helping companies of all sizes across all industries to elevate their pricing strategies, fine...
Do I Need A Pricing Team To Use Price Management Software?
Do I Need A Pricing Team To Use Price Management Software? Pricing software is not cheap, and investing in a pricing solution is a big decision. Congratulations, you’ve made the decision to use price management software to alleviate pressing business pains. If you’ve made the right choice, the software you want will save you time and spark a not minimal ROI. So, if price management software does all that, do you even need a pricing team to use the software? The short answer is “yes”. Over the past decade, we at Pricefx have learned that pricing software is not for...
How to Manage Fluctuating Prices & Margin Erosion
How to Manage Fluctuating Prices & Margin Erosion In the current business environment, regardless of the industry your company operates in, if you have not changed your prices at least once (or even more this quarter), the chances are you’re missing out on plenty of profit that is being left at the checkout. Focusing on changing price levels of raw materials and fuel, anyone from technology retailers and wholesalers to companies in more specialized fields such as waste management and food distribution are being required to maximize their profits by making tweaks to their prices every time it’s necessary to...
Pricefx improves user experience and enhances existing capabilities in its latest major release
Pricing isn’t an easy task to manage. Pricing efficiently and wisely is even harder. At Pricefx, we want to help pricing experts manage and optimize their prices at scale, in a fast and intuitive way. In order to do that, we need to continuously improve and develop our solution to meet our customers’ needs. In our latest release Godfather 8.0 (available January 23rd, 2022), we’re significantly improving our user’s experience on the platform, plus we’re introducing new functionalities that will support pricing and sales professionals achieving their objectives. Below are the most important updates coming with the new release: Improved...
How to Integrate Pricefx Pricing Software with Your System
How to Integrate Pricefx Pricing Software with Your System Without integrating pricing software with your ERP (Enterprise Resource Planning), CRM (Customer Relationship Management) or other in-house system, you risk not only losing effectiveness and organization. You’ll also be taking random chances that you are at peril of leaving potential profit at the checkout and leaking profit margin by using unenhanced and outdated pricing methods. Modern AI-based pricing software enables the unification of front and back-office functions and data points through automation of Salesforce, SAP, and other CRMs. The integration efficiencies unlock your data to achieve price optimization and allow you to...
Who is Pricefx and What Do We Do?
Who is Pricefx and What Do We Do? You have probably seen a video or article in the small and niche world of pricing companies and wondered to yourself, “Who is Pricefx and what do they do?” Could our suite of pricing solutions be the key to your margin erosion, revenue stagnation, or time-saving problems to name a few? Well, you’ve come to the right place to get an answer to your questions. Simply put, we’re the leading end-to-end pricing software, native cloud-based, and powered by the latest in Artificial Intelligence (AI) and Machine Learning (ML). And it’s not just us tooting our own horn; you can find out more from our customers’ success stories and...
How to Integrate 3rd Party Systems with Pricing Software
How to Integrate 3rd Party Systems with Pricing Software Chances are if you are the Pricing Manager or VP of Sales of a large enterprise company, you are probably suffering from ‘tool fatigue’ from having too many options available to you to track your pricing, customers, logistics, price lists etc. That’s probably why you have been googling around for the last 45 minutes looking for products that can easily be integrated into what you currently use (for example, will it feed information in my current SAP software?) and create a suitable “Swiss Army Knife – one tool does it all” replacement with a 3rd party...
How Does SAP Integrate With Pricing Software? Plus How To Get Started
How Does SAP Integrate With Pricing Software? Plus How To Get Started So, you’ve got your SAP Enterprise Resource Planning (ERP) software running like a dream. Your pricing strategy is taking on a brand-new dimension and efficiency is boosted to the point where you can expand your organization and diversify your client and product base. Then suddenly – Bam! – your business requirements have changed. You’ve now discovered that you need to automize and track your newly introduced rebates and promotions set-up. What’s more, is that you need to have your finance and CRM (Customer Relationship Management) systems integrated into what will eventually become a one-stop pricing software stop. First up, congratulations on your business success, but take note and read...
4 Steps to Securing Executive Buy-In on Pricing Software
4 Steps to Securing Executive Buy-In on Pricing Software Large-scale corporate initiatives have a tendency to fail without executive buy-in. We have all experienced the frustrations of attempting to adopt new software in accounting, sales, marketing, or other organizations. Without the support of key players in your organization, be it those who write the checks or those who can muster wide support, you may struggle to get the initiative started, implemented on time and within budget. Or (and we shudder to think) the software gets implemented but the people you bought it for won’t use it. The reality is getting...
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Applying a Change Management Perspective to Digital Transformation
Change Management Principles to Aid Your Digital Transformation Successful digital transformation requires making fundamental changes to cope with a new, globalized, technology-driven market environment. But employees are instinctively resistant to change. Rosabeth Moss Kanter identifies ten reasons for such reluctance. These include a loss of control, uncertainty, breaking habits and routines, loss of face, concerns about competence, and the false belief that change equals more work! The answer to a smooth rollout of digital transformation technology and processes is adopting a change management perspective. Here’s how you can make change management work within your organization. Working with the Salesforce for Change Management Sales teams are particularly resistant...
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Digital Transformation – Why It’s Vitally Important to Pricing
First, we’ll look at: What pricing excellence is and why being smart just isn’t enough What you should be looking for in a pricing tool And then we’ll dig deeper into our value drivers: Why speed wins business and how you can leverage it An opportunity to shed your on-premise past How the right tools can reduce total cost of ownership How technology can boost flexibility, adaptability and productivity How you can turn your team of analysts into a team of strategists Then we’ll explore: The importance of change management in digital transformation Your basic building-blocks for change The true...
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Embracing Pandemic-Driven Change in Business
Pricefx 2021: Embracing Pandemic-Driven Change 2020 was a challenging year, to say the least, with a global pandemic and mandatory work-from-home initiatives impacting virtually every business across every industry. In spite of the difficulties, thanks to the company’s focus on attaining new funding, expanding global market leadership and accelerating product innovation, Pricefx grew its year-over-year subscription revenue by 44%. Our commitment to product innovation kicked off with the release of Lightning, our turnkey solution that delivers pricing analytics, management and CPQ realization tools able to go live in just six weeks. Our acquirement of Brennus Analytics brought additional advanced AI technology and a team of AI professionals into our mix, leading to the launch of our ground-breaking Vesper release and the Unity UI – PriceOptimizer AI. We partnered with Bain & Company to launch three price accelerators to assist Bain customers with discounting, pricing leakage...
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The Business Intelligence That’s Essential for E-commerce
What Is Business Intelligence? The concept of business intelligence is nothing new. In fact, Howard Dresner (at the time, a Gartner research analyst, now Chief Research Officer at Dresner Advisory Services) coined the term way back in 1989. The technological landscape has changed massively since then, but business intelligence, which is a catch-all term for a wide variety of tools, applications and methodologies, still refers to the ways that we can deliver information to end-users without needing them to be experts in operational research. By harnessing the power of business intelligence, you can turn big data into big opportunities for...
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The Four Models You Need For Change Management
Change is a challenge within any business. It brings up a plethora of navigational issues whether they be from your team, from new systems lacking critical elements or strongly embedded processes that are hard to shift away from. As a manager, it can be easier to avoid innovation and instead continue to use systems that are tried and tested, despite how out of date they may be. But you needn’t be so quick to despair or to feel forced to choose the ‘safe’ option, there are methods which you can utilize in order to create a smooth transition process and...
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What Are the Phases of a Project’s Life Cycle?
In the digital age, it is crucial that you are open to change, especially if it leads to your company having the competitive edge when it comes to pricing management. But changing processes throughout a project life cycle can feel daunting, especially if you’ve worked the same way for twenty-odd years and feel comfortable with the flow you’ve become accustomed to. The bottom line is, you shouldn’t need to make any changes at all unless there’s a tangible benefit to doing so. While some processes within your company can stand the test of time, others, such as your pricing...
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How Process and Change Management Drives Price Transformation Success
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What Is Digital Transformation and How to Scope A Project with Confidence
“Start small, think big…”, Steve Jobs once said, and nothing could be truer of digital transformation. Transforming a company born before the digital age, from one trapped in a past of legacy IT systems and manual processes to one that uses superior technology as its unfair advantage, can seem like an insurmountable task, and if your project scope is flawed, then chances are it will be impossible. But small changes, enacted immediately, can have a big impact on your business, persuading senior management that having a digital transformation project plan, especially as regards to pricing, is not only a good...
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Resistance Is Useless: 7 Steps to Getting Digital Transformation Buy-In
Digital transformation is the ultimate change management challenge for any company. Every corner of a business is connected, from each individual task and activity to companywide processes and models. And it is this inter-dependency that makes digital transformation so essential. And so challenging. It’s a major upheaval. It disrupts current processes, forces teams to change the way they work, and costs a pretty penny too. It’s no wonder the company puts up such a fight. “I have to learn new software?” “But we’ve always done it this way.” “That’ll take ages!” “A robot can’t tell me how pricing works!” “The...