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Upgrading Pricing Software: Worth the Investment or Not?

February 1st, 2024 | 10 min. read

By Justin Childs

When it comes to upgrading pricing software, companies often stand at a crossroads. The decision isn’t merely about an advanced version or a new system; it’s an investment in efficiency, accuracy, and adaptability. At the core, this choice hinges on assessing whether the enhancement will yield a return on investment (ROI) that justifies the expenditure and effort. However, as technology continually evolves and business needs change, companies may need to upgrade their   software to stay competitive and maximize their revenue potential. If all your competitors are using an advanced pricing system, you’ll be slower to respond and less likely to take action across your entire portfolio and customer base and your business may become harder to do business with. But how do you evaluate if upgrading your pricing software is worth the investment?

At Pricefx, we have more than a decade’s worth of experience of standing at the forefront of the pricing industry helping our customers to boost profits and growth. Naturally, part of that process is concerned with ensuring our clients make the absolute most of the innovative pricing software we provide them with. For us to succeed, it is critical that you do too. As part of that process, knowing how and when to upgrade your pricing software and/or extend your pricing software functionality to bring your business objectives to fruition is critical.

Evaluating the worth of upgrading pricing software involves navigating through a multitude of factors, balancing the perceived benefits against the cost and potential  risks, and evaluating your company’s readiness (originally data, identified subject matter experts, clear objectives and accurate timelines and budget) for the change. In this article, we will explore these aspects comprehensively, including an examination of how updates and upgrades work at Pricefx.

The Benefits of Upgrading Pricing Software

Upgrading pricing software can offer several benefits, including access to the latest features and innovations, improved performance and scalability, and enhanced security and compliance  You also have an opportunity to re-evaluate processes and structure. Change without a catalyst can be difficult, and the move to pricing software can be the push to align internal processes with strategic goals. By upgrading to the latest version of pricing software, companies can stay ahead of the competition and leverage the latest technology to optimize their pricing strategies.

The Case for Upgrading: Advantages and Perceived Benefits – In a Snapshot

 

Upgrading pricing software can offer a range of advantages. It’s often about enhancing operational efficiency, governance, and accuracy   pricing strategies.

 

For instance, newer versions may boast AI-driven capabilities, empowering businesses to analyze vast data sets swiftly and derive actionable insights. This upgraded functionality could revolutionize how companies predict market trends, optimize pricing, and remain agile in a dynamic marketplace. Benefits in Brief:

 

  1. Enhanced Decision-Making: The upgrade may equip the with better algorithms and enhanced flexibility to make changes, aiding in more accurate predictions and decisions.
  2. Adaptability and Scalability: Improved software can potentially accommodate a broader range of products, services, or markets.
  3. Efficiency and Automation: Streamlined processes and automation may cut down on manual efforts, reducing errors and increasing productivity.
  4. Advanced Analytics: The upgraded version might offer more sophisticated analytical tools, offering deeper insights into customer behavior and market trends.

Another of the key benefits of upgrading pricing software is access to the latest features and innovations. Pricing software vendors are continually updating and improving their solutions   meet the evolving needs of their customers. Like all technology the pace of change is quick, even two or three years can mean huge improvements with modern pricing software in terms of the features, capabilities, and benefits. By upgrading to the latest version of pricing software, companies can benefit from new features and capabilities that can help them optimize their pricing strategies and gain a competitive edge.

Upgrading pricing software can also improve performance and scalability. As companies grow and their pricing operations become more complex, they may need a pricing software solution that can handle larger volumes of data and more complex pricing models. Upgrading to a more robust pricing software solution can help companies scale their pricing operations and improve performance.

Finally, upgrading pricing software can enhance security and compliance. As cyber threats become more sophisticated, companies need to ensure that their pricing software is secure and compliant with industry regulations. Upgrading to the latest version of pricing software can help companies stay ahead of the latest security threats and ensure compliance with industry regulations.

The Costs of Upgrading Pricing Software

While upgrading pricing software can offer several benefits, it’s essential to consider the costs associated with the upgrade. Upgrading pricing software can be costly, both in terms of time and resources. Companies may need to invest in training and support to ensure that their team is fully equipped to use the new software effectively. Additionally, upgrading pricing software may require changes to existing pricing processes and workflows, which can be time-consuming and disruptive.

The Case Against Upgrading: Challenges and Potential Risks – in a Snapshot

 

On the flip side, the decision to upgrade is not without its share of apprehensions. Beyond the initial investment, companies might be wary of potential disruptions, integration challenges, or the need for extensive employee training. Moreover, the expected benefits may not always materialize immediately, and there is a possibility that the new features might not align perfectly with the company’s needs.

 

Challenges for Consideration:

  1. Cost Considerations: The financial investment in acquiring and implementing new software can be substantial, including initial setup costs and ongoing . This is the primary reason that choosing the right partner is so important, whether that be first party providers or system integrators. The work of standing up modern enterprise software can be made more seamless and risk free when you engage a party who specializes in this type of transformation.
  2. Integration Complexity: Integration with existing systems can present unforeseen complications, leading to disruptions in operations.
  3. Learning Curve: Employees might require extensive training to effectively utilize the new features, potentially impacting productivity during the transition phase.
  4. Unfulfilled Expectations: There’s always a risk that the upgraded software might not deliver the anticipated value or align perfectly with the company’s requirements.

 

The Balanced Evaluation: Making the Upgrade Decision

The decision to upgrade pricing software is a balancing act. It’s about weighing the prospective benefits against the challenges and making an informed choice based on the organization’s current needs, future aspirations, and financial capabilities. It’s not merely a question of “Should we upgrade?” but rather “What is the precise ROI we anticipate from this upgrade?”

Ultimately, it’s advisable to conduct a thorough analysis, considering the software’s features, projected benefits, costs, and potential challenges. Additionally, seeking input from key stakeholders, consulting experts, exploring trial periods or   and consulting with references, and checking with third-party review sites like G2 can offer valuable insights. This comprehensive evaluation will help chart a path that aligns the upgrade decision with the company’s overall goals and vision.

It might also be wise to consider the cost or value or not updating your pricing software. For those interested in learning more about “The Cost of Pricing Software Inertia.” Check out this handy video below:

The Ever-Evolving World of Pricefx Updates, Upgrades & Extending Functionality

Changing it up to look at Pricefx pricing software specifically for a moment, let’s delve into the realm of Pricefx updates, upgrades, and extending functionality to understand how these processes unfold and benefit businesses.

Upgrading your Pricefx software or extending its functionality can be a strategic move to optimize your pricing strategies and stay ahead of the competition.

Pricefx Pricing Software Upgrades

 

Pricefx continually releases upgrades to its pricing software, ensuring that customers have access to the latest features and innovations.  Security upgrades also at both release levels.

By upgrading to the latest version (click here to learn more about the version policy) of Pricefx, businesses can benefit from cutting-edge capabilities, improved performance, and enhanced security and compliance, empowering them to make accurate and fast pricing decisions.

Extending Pricing Software Functionality

 

In addition to regular updates, extending the functionality of your current Pricefx pricing software allows you to tailor the solution to meet your specific business needs. Pricefx offers a range of software packages designed to address different pricing requirements, including Plan, Price, and Profit. Each package provides unique functionalities that can be used   or in combination, depending on your business needs.

Our Customer Ongoing Support Agreement (COSA) is configuration support especially for those with a solution that has been configured by Pricefx. (If your solution was configured by one of our certified partners, your COSA would be with them.)  The COSA ensures that continuous enhancements as part of your subscription. and Pricefx is open to your business users and IT teams to make adjustments.

Plan-Price-Profit

 

Extending the functionality of your Pricefx software enables you to customize the solution to align with your unique pricing strategies and objectives, ensuring that it supports your business’s specific requirements. Whether you are looking to inform your company’s data, organize pricing into segments, or create a straightforward number of price strategies, Pricefx’s price management software packages offer the tools and capabilities to support your pricing objectives.

Ultimately, upgrading your Pricefx software and/or extending its functionality can be a valuable investment for your business. By leveraging the latest innovations and tailoring the software to meet your specific needs, you can optimize your pricing strategies, respond swiftly to market changes, and drive revenue growth. With Pricefx’s commitment to continuous improvement and the flexibility of its software packages, businesses can maximize the value of their pricing software investment and maintain a competitive edge in the market.

 

Making the Right Upgrade (or Not) Decision for Your Business

While the decision to upgrade pricing software is intricate and multifaceted, it holds the potential to drive significant improvements in a company’s pricing strategies, operational efficiency, and competitiveness. However, as we have discussed, the choice should be a well-informed one, considering your organization’s unique needs, capabilities, and readiness for change.

By carefully evaluating the potential benefits against the perceived risks, businesses can pave the way for a successful software upgrade that aligns seamlessly with their growth trajectory.

To help your business decide if you are going to upgrade your current pricing system (regardless if it is a decision involving changing pricing software vendors, or perhaps even migrating from your outdated Microsoft Excel spreadsheet manual pricing system ), you might want a feel for the tangible benefits you may be able to enjoy from quality pricing software like Pricefx.

If you would like to check on the positive impacts Pricefx pricing software could have on your organization’s margin numbers, check it out for yourself on our free Margin Lift Calculator:

CTA-Margin-Calculator-2

However, if you are ahead of the game and you have completed all your calculations, talk to a pricing expert today to get started on your pricing software journey.

Justin Childs

Solution Strategist , Pricefx

Justin Childs is a Senior Solution Strategist with Pricefx, based in New Hampshire, USA. Prior to working with Pricefx; Justin spent 10 years working at a durable consumer goods manufacturer as their NA Pricing Manager. He has a demonstrated history of working in the consumer goods industry, packaging manufacturer and retailers, with particular focus on Pricing Strategy, Demand Planning, Financial Forecasting, and competitive intelligence. On the weekends, you will find Justin in his workshop learning new hobbies or playing with his son.