When Dynamic Pricing and Profit Meet
May 6th, 2019 (Updated 03/23/2021) | 4 min. read
By Duncan Hendy
When Dynamic Pricing and Profit Meet
- You need to respond rapidly to changes in prices to make sure you stay competitive and profitable
- Using algorithmic optimization to set up pricing guidelines means you can test any modifications to pricing strategies before going live with them
When it comes to defining and managing your pricing strategy, having the ability not only to calculate all product pricing types based on accurate simulations but to publish them quickly will determine the success of your pricing policy. Pricefx’s PriceBuilder allows you to do just that and more…
PriceBuilder: Seamless Integration Your Way
In the past, disparate sources remained that way, disparate. With price lists often stored in a number of formats and systems, digging through all that information to gather the actionable data necessary to plug into your pricing systems was tricky to say the least. Say hello to PriceBuilder, and slam the door in the face of all those administrative nightmares! Now you can connect your price lists, precious Excel spreadsheets, and CRM, ERP and business intelligence systems to your pricing software in real-time and respond rapidly to changes in prices to make sure you stay both competitive and profitable.
Dynamic Pricing Means Sustainable Profit
Whether you are a marketing and pricing analyst, product specialist or part of regional sales management, you need insights into pricing based on time, surge and demand plus the ability to track, identify and respond to the important relationship between your list price and pocket margin – this means recognizing those critical moments where you need to make changes and making them quickly. With Pricefx’s PriceBuilder, you have the power to react to market conditions, your competitor’s pricing, costs of supplies and segment discounts and all based on your pricing rules.
Pricing Rules You Define
When it comes to defining your pricing strategy, a number of hierarchical levels need to be taken into consideration. These include levels such as regional, global, segment or customers. By setting up pricing guideline and calculating and simulating special, gross and net prices all from a single centralized app, your speed of reaction quickly transforms into maximized profit.
Simulate to Articulate
Of course, the power of hindsight is an anecdotal goldmine. But using algorithmic optimization to set up pricing guidelines and calculate and simulate gross, special and net pricing up front, you can test any modifications to pricing strategies before going live with them, thus leveraging tomorrow’s hindsight today. But that’s not all, when you are testing any discounts or offers based on simulations of pricing, discovering their impact on margins and then implementing them on either rule-based or manual results approval, you are giving yourself ultimate control over how you publish any of those changes to your pricing.
Let’s Take a Look Under PriceBuilder’s Hood
- Centralized definition and management of all relevant price attributes, parameters, rules, policies as guidelines to enable decentralized price calculation, optimization and realization
- Definition, maintenance and execution of various pricing methods (cost, competitor, market, attribute, value or mix based), leveraging historical transactions and insights from analytical data
- Static (periodical) calculated Price lists, dynamic Live Price Grids (real-time (re-)pricing for large product portfolios) and Manual Price Lists (maintenance of special prices)
- Flexible approval workflow
- Setup and display of warnings and alerts on any calculated value and/or indicator
- Price simulation and scenario analysis
- Dynamic segmentation based on historical transactional data
- Flexible management and pricing of multilevel bills of material (BoM), recipes, kits and bundles
- Easy-to-setup integration with internal (e.g., product and customer master, customer profile indexes, etc.) and external (e.g., raw material costs, exchange rates, market indexes, etc.) pricing relevant data in real-time
Data + Logic = Powerful Pricing
Hands-on, accessible data that you can take action on across the entire Pricefx suite means you are driving smart pricing decisions in a time-critical manner. Using Pricefx’s intuitive logic editor backed up by its customizable function- and command-based toolkit, you can create and define different price-calculation schemas fast and logically. As PriceBuilder acts as a powerful formula engine based on simplicity, transparency and flexibility, whatever your needs, you can rest assured that it is adjusting and reacting with precision.
Grow, Grow, Grow
Of course, as your business grows, so do your pricing demands, so you need your tech to be able to expand with you. While you are busy adding new products, business units, single- and multi-currency markets and multi-level calculation methods, PriceBuilder’s flexibility keeps you covered. And because you can set up instant notifications to make changes based on any calculated price or value indicator easily, there are no more nasty and costly pricing surprises lurking in the shadows. And that has to be something worth celebrating!