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  • Karyna Mihalevich

CLARITY.SHOW Podcast: Manufacturing Pricing Strategies with Pricefx

Last week on the CLARITY.SHOW podcast, Karyna Mihalevich, CLARITY CPQ Functional Lead, and Sara-Marie Gansert, Solutions Strategist at Pricefx, discussed the burning topic of pricing strategies in the manufacturing industry. Keep reading to learn more about the challenges companies face when choosing a pricing strategy.

Sara-Marie Gansert has been supporting companies across various industries to improve their margins by finding and realizing the right pricing strategies. Now working as a Solution Strategist for Pricefx she introduces businesses to pricing software tailored to master their individual challenges in pricing.

Content

3 Complexities in Setting Pricing Solutions

1. Not knowing your market and costs

2. The lack of transparency and comparability

3. Not setting pricing goals that align with your business goals

Conclusion


3 Complexities in Setting Pricing Solutions


1. Not knowing your market and costs

Some key information about your customers and your distribution channels already is concealed under your existing transaction data. The inability to properly analyze this data is what prevents you from accessing these findings and truly using the knowledge to tailor your pricing strategies.

This problem can be solved by consolidating your pricing data within the software to make it usable. The key is finding the right proportions of cost, sales price, and volume to match where your product is in its life cycle. And you also want to make sure that you maintain a certain dynamic that reflects the maturity of your product.

Also, in the demanding world of e-commerce, a quick response to your competitors' price fluctuations is vital. Prices must be adjusted in accordance with what competitors are doing, and the pricing strategy must be tailored to this competition.

2. The lack of transparency and comparability


When it comes to competitors, products, and prices, having a 360-degree view of what's going on in the market is critical. Collecting the data and analyzing all this on your own can be very challenging. That is why you can find it helpful to work with companies that are specialized in price crawling and product mapping to make sure you have someone to support you with this and that the data you're using to feed into your pricing strategy is reliable.

Global market constant changes force businesses to be more adaptable and dynamic. Yet, a rapidly changing market does not require rapidly changing pricing methods. Instead, it would help if you found the pricing plan that works best for your organization, one that is stable and trustworthy and allows you to respond dynamically.


3. Not setting pricing goals that align with your business goals


A pricing strategy should fit your business model and reflect your business goals. Once you have defined your pricing goals, you will know which pricing strategy is right for your business and how it can support those goals.

The next step after defining a pricing strategy is to introduce it to the system landscape. Companies frequently frown upon this step, but with today's software, it is simple to set everything up and integrate it into the most common ERP systems.

The use of new technologies has always helped businesses stay competitive. Optimizing CRM without first mapping your processes step-by-step is impossible. If you don't first define your business goals and needs, it will be difficult to understand how any new technology meets those needs and helps you to achieve those goals.

Developing a strong CRM vision is the first and the most critical step to a successful CRM implementation. Doing it right will prepare you for the rest of the journey.


The Bottom Line


One of the most significant aspects that can help your business expand is the correct pricing strategy that meets your business aim. Approaching more complex and data-driven pricing strategies supported by pricing software can help you learn more about your products and customers, spot pricing opportunities, mark leakages, and respond to insights by adjusting your pricing strategies to suit your needs.


Get in touch

Don’t forget to listen to the full podcast to know more about popular vs effective pricing strategies, and users' acceptance of pricing solutions.

Subscribe to CLARITY.SHOW to uncover the Quote-to-Cash world!


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