Tag Archives: Pricing software

Tired of watching half of your potential profits end up as ‘money left on the table’ because of uncontrolled Pricing Leakages?

Discover PowerPricer : new ‘State of the Art’ pricing software from PriValEdge

  • Visibility & easy access to all you Pricing + Discounts & Rebates data
  • Powerful & flexible Pricing management, budgeting, monitoring & controlling
  • Optimization of Prices, Discounts, rebates & promotions based on Science & facts
  • Effective Quoting & Value Based Selling support to sales force
  • Ability to simulate & support decision making with interactive models
  • … and much more (see by yourself)

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Pricing Tool 2: Dynamic Price Waterfall

What is Dynamic Price Waterfall

This  pricing tool allows to:

  • Detailed analyses of leakages (by type) that take place between List price & Pocket Margin.
  • May be used at Product, Client, Segment or Market level

What it does:

  • provide visibility and control of ‘hidden’ discounts and costs to clarify the contribution margin on a given deal.

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Pricing Tool 1: Price Evolutions

What is Price Evoutions ?

This  pricing tool allows to:

  • Analyses Prices (or D&R) evolutions over time
  • May be used for a single product or a group of products, globally or by client segments / channel, or by account manager.

What it does:

  • provide visibility and insights on evolutions to identify trends / changes in dynamics or correlations & opportunities & threats that they represent

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Pricing and Value Management Excellence in Luxury Brands – PowerPricer

Managing Value to Customer (and user) and pricing are critical business processes for Luxury Brands. However, they come with many operational & strategic challenges: complex & variable value perception (for distributors as well as customers); Value measurement in an industry where much of the value comes from the brand and with relatively few sales per product is particularly complex.. Defending Brand values and image whilst dealing with vast differences in markets potential and priorities as well as channels require subtle adaptation of Value propositions and Pricing whilst maintaining a coherent Brand strategy. As a result, Luxury Groups must enforce strict corporate guidelines, as well as control, auditability and traceability to ensure compliance. A lack of unified processes and systems can lead to uncontrolled and ineffective Pricing Strategy, pricing that is out of line with value perception or gradual loss of value in the eyes of customers. All of which can lead to revenue leakage, ineffective value capture or loss of competitiveness… not to mention potential compliance issues or disruptions in channel strategies.

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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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The 5 pricing optimization tips that’ll turn your organization into a Pricing & Value powerhouse

While most of us tend to think of prices as a sheer number, pricing and valuation is actually embedded deeply into the human perception.

As a result, when you want to fight the otherwise natural commoditization of your prices you have to produce much more than a new price list. Why? Simply because prices are subject to negotiation and if you don’t train your sales force to defend it, your new price list is worthless… or because value is a matter of perception, and as it always goes with perception, it varies widely with people and market segments…

If there was but one lesson to be learned, it is that pricing optimization is a lot more than just reviewing your prices. As a matter of fact, it is worthless to work on your pricing if you fail to deliver the message about your value proposition to your customers. And this will undoubtedly happen if you fail to convey your new pricing strategy within your own organization. In this article we’re going to detail a bit further a few of the best practices that could help you do just that.

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