Pricing Is One Of Your Best Tools To Improve Profitability
In B2B, pricing is one of the most powerful levers for increasing profitability and competitiveness. But for far too many companies, changing prices is viewed as extremely risky — something where one wrong move can impact revenues, profits, and customer retention…all at the same time.
So how can prices be improved without putting your business at risk?
Even Your Best Sales People Can Be Stuck Guessing
Figuring out what to charge your B2B customers can feel like trying to hit a bullseye with a blindfold on. Sure, if you can magically hit it right, you’ll be able to win the deal and maximize your revenues. But if you guess too low, you’ll be leaving good money on the table. Worse yet, if you guess too high, you run the risk of losing the deal completely. How can you avoid the guesswork and hit the right number the first time?
Command & Control Processes Just Won’t Work
It’s easy to believe that more analysis and better compliance processes will eventually lead to more profitable prices, but research has shown that it’s almost impossible to keep up. Even a team of highly-trained pricing specialists can only analyze a handful of deals at a time—what about the rest? And complex approval loops to ensure compliance don’t solve the problem of getting better prices to sales in the first place.
It Is Possible To Set Prices With Less Risk
Knowing exactly how your customers will respond to different prices is the secret to setting prices with far less risk. Having this key piece of information opens the door to being able to accurately model what’s really going to happen with different prices and defining optimal pricing strategies that achieve multiple objectives at the same time—like improving revenue and margin growth. But is it even possible to know how your customers will respond to price?
MarginMax Reveals How Customers Respond To Price
MarginMax is the only B2B price optimization solution capable of quantifying true price response. Using this valuable information, it puts your company’s domain experts in the driver’s seat so you can achieve your objectives with less risk. Through a powerful user-interface, your experts can directly influence and interact with a dynamic, real-world model of their business that knows exactly how customers will respond. Through Zilliant’s Action Response Modeling™, companies can test various pricing scenarios in real-time and accurately forecast the P&L impacts before committing.
And because it’s a subscription-based SaaS solution, it’s easy on your budget and can be delivering results in as little as 90 days.