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What to Look For in Pricing Software

What is Pricing Software?

A Pricing Software suite is a set of tools used for data collection, price performance diagnostics, and market evaluation for the sake of making informed business decisions about pricing.

Beating the demand curve is the way to maximize profit. Most people assume that as price goes down, demand increases. In reality, how customers react is subject to many factors, and consumers may often choose a more expensive product over a cheaper brand. Lowering prices may even reduce demand due how it may influence buyers to think it's an inferior product.

Value-based pricing means being able to discern just how much people are willing to pay for a product and get the most out of every sale. Pricing software is an indispensable tool for creating such an efficient pricing strategies.

It is not a substitute for the research that a pricing consultancy firm can do. There is no 'black box' software that can do that. It is however, exactly what you need to be able to learn, monitor, model and implement effective Pricing improvements.

What to Look For in Pricing Software

As you are seeking optimum value, software that aims to help your Pricing concerns should also accommodate your needs and price themselves to match. Learn the difference between affordable software and software that delivers ROI by checking if it has these features.

1) Confidentiality

Security and privacy is important for new pricing decisions. Your pricing software should be able to store the vast volumes of information related to your business in encrypted and secure environment separate from other projects on the server.

Make sure that only personnel and account managers can access the data, with no way to crack into it via shared storage space or insecure digital keys.

2) Reliability

Valuable information should be protected, not just from unauthorized eyes but accidental loss as well. Backups should be automatic and secure.  Data consistency and synchronization checks between different data sources and linked systems can help make sure that corrupted or false data don't lead to bad decisions.

You need to be able to trust that it will run reliably on your machines, will integrate with the communication tools that your employees and management staff will use, and functionality extends beyond the workplace as real-world market data comes in.

3) Ease of Use

Pricing Software is business software that aims to transform volumes and volumes of data gained through research and customer modeling into quickly intelligible reports. Data input and understanding needs to be as intuitive as possible.

Project personnel with only minimal computer skills need to be able to use the software intelligently and with ease. Confusion through unnecessarily complex procedures is likely to lead to errors.

4) Depth of Capabilities

Data handling and analytics for value-based pricing is the power behind pricing software. A wealth of information presented as intuitive graphs and charts should be easy to understand, but they also need to be correct and comprehensive.

Market simulations and customer decision modeling is a powerful feature that you simply cannot do without. Benchmarking, Monitoring and Reporting tools can track changes in pricing performance in real time so you can know if your strategy is working and adjust as needed.

Pricing software should cover three phases of the Pricing Strategy process – Value Capture, Simulation, and Performance Monitoring.

5) Effectiveness

The ultimate metric of pricing software is that it works to increase your revenue. Does the software have a proven track record in helping companies implement pricing improvements?

Pricing software, while an important part of a new and improved pricing strategy, it is just one part of the pyramid of Pricing Excellence. It needs to be carried out to improve your profit margin. Using the analytics provided by the software, change can be executed from management down to sales and production divisions.

Is the pricing software designed to make it easy to receive and execute targeting pricing processes for sales personnel and managers on the field? The best pricing software provides continual monitoring and support for sales efforts, lets you quickly identify and remove revenue drains, and allows you build a culture of excellence for your business.

For help and advice on carrying out pricing strategy, contact Privaledge

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