Author: Cath Brands, Chief Marketing & Innovation Officer, Flintfox
In today's unpredictable market, pricing professionals are no longer in the background; they’re at the forefront, maintaining stability as well as driving business growth. But meeting these expectations isn’t easy in a highly volatile market and when working under the constraints of legacy systems.
Our recent global survey of over 1,000 pricing professionals revealed a startling fact: 86% of respondents believe they lost out on profit over the past three years because they couldn't adjust prices quickly enough. On average, that's a staggering $420,000 per year down the drain.
The Three Key Challenges Holding Businesses Back
Slow Reaction to Market Changes: 94% of pricing professionals worry about how fast they can implement price changes in response to shifting market conditions.
Complex Pricing Across Channels and Regions: 71% of pricing professionals struggle with multi-channel pricing, while 73% find regional pricing strategies difficult to manage.
System Limitations: Over a third of companies say their system can't support their pricing strategy, and nearly half struggle to manage promotions and rebates effectively.
Building a Resilient Pricing Strategy
To overcome these challenges, businesses need to ask themselves critical questions:
Are you reacting fast enough to market changes?
Are you losing value through discounts and promotions?
Is your pricing consistent across channels and regions?
Are you optimizing pricing based on customer segments?
Are your pricing tools supporting your strategy?
Interrogating these five areas can reveal where your pricing strategy might be falling short and where technology can help bridge the gap.
The Role of Technology in Modern Pricing
To understand how technology can support your pricing strategy, we first need to understand the role of each tool. Think of your pricing strategy as a house. Your ERP system forms the foundation while price-setting tools build the framework. Price execution ensures everything flows smoothly, like the wiring and plumbing in a home. Finally, price management acts as the roof, protecting your entire pricing structure.
By understanding where each aspect of pricing technology fits within your pricing strategy and the interplay between each, you can identify the gaps or areas for improvement. And with the right technology in place, your pricing strategy can become more agile, responsive, and profitable, ready to face the challenges of today's volatile market.
I'll be diving deeper into these topics and sharing actionable insights at the PPS Fall Pricing Conference in Vegas on Thursday 24 October. Join me to discover how you can maximize value through technology-powered pricing strategies.
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