Pricing should be approached strategically rather than just tactically. It needs to reflect a company’s overall value proposition now more than ever. The margin for error keeps getting narrower and the pressure on pricing has never been greater. In many lines of trade, margins are becoming razor-thin due to sophisticated low-cost providers, internet companies and other types of non-traditional competitors. As a result, pricing is much too critical to leave solely at the discretion of the sales team.
Margin optimization today is much easier to accomplish due to sophisticated software designed to analyze transaction data in a distributor's ERP system. Imagine having accurate market-sensitive pricing built into your ERP system, capable of providing realistic pricing guidance for any product you might wish to sell. SMARTPricing® can provide accurate, consistent pricing that will empower your sales and customer service reps to make informed pricing decisions on their own and at margins that are in line with your company’s expectations, without slowing down the buying process.
With minimal training, sales reps will learn how to fix historically-underpriced sales transactions and build order size in an effort to reduce the number of money-losing customers. Pricing decisions resulting from data analysis, combined with the “tribal knowledge” from your sales team, will increase your profits exponentially. Evergreen can help get you there.
Strategic pricing isn’t smoke and mirrors. Instead, it’s about leveraging your data and identifying quality past-pricing performance. Turning hindsight into foresight through predictive pricing analysis will add a few points of margin to your top line. Using a data-driven approach to pricing, and then setting up margin or discount matrices in your ERP systems' pricing library, will reap huge rewards for your company. A key benefit of using SmartPricing® is that your team will be able to provide fast, consistent, and accurate pricing with a minimum amount of time and effort.