Price management boils down to one word: control. It’s on the minds of a lot of pricing leaders who struggle with data scattered throughout the company with no single source of pricing truth. Or don’t have the tools and processes to answer things like where the biggest product and customer pricing opportunities are hiding. Further, if businesses don’t have a way to maintain competitive, realistic pricing online, then they’ll miss buyers who are shifting to digital channels in record numbers. Without control and dynamic pricing innovations, pricing isn’t working as a competitive advantage and businesses risk falling behind.
Understanding Dynamic Pricing
In the new age of eCommerce, dynamic pricing is a pricing strategy where the prices of products are continuously adjusted in response to real-time supply and demand. Dynamic pricing enables businesses to have greater control of pricing strategies with real-time access to pricing trends.
By using dynamic pricing, businesses can view competitors’ pricing changes and have a better understanding of the supply and demand of products across the industry. As a result, eCommerce retailers have the right data and information to set optimal pricing while still being profitable, despite continuous price fluctuations. Companies today rely on dynamic pricing software to take the guesswork out of pricing to precisely calculate, monitor, and manage existing pricing models.
Using Dynamic Pricing
Do you struggle with coordinating dynamic pricing across your various customer channels? Is price management complex due to multiple price lists and siloed channel managers? You can’t control the weather or other factors that might affect your business, but one of the benefits of dynamic pricing is that you can dynamically calculate every price to reflect real-time conditions.
Consider one business whose lagging prices contributed to significant market share loss. Static price lists and manual updates made it virtually impossible for pricing teams to keep up with spontaneous sales published by competitors. However, once this business applied a technology-driven approach with dynamic pricing software to its pricing strategy, things changed.
The result? By replacing static price lists with our dynamic pricing engine, company leaders who took control of their pricing and are now calculating 26 million prices a day for their eCommerce channel—all in real-time, on-demand, and based on current market trends.
Benefits of Dynamic Pricing
Similar price management transformations are happening in every industry, every day. From manufacturing to automotive to food and beverage, companies are adding capabilities to identify pricing leaks and uncovering profit opportunities in new ways that simply aren’t possible working from spreadsheets. Another benefit of dynamic pricing is that it allows companies to maintain competitive pricing even through digital channels by incorporating up-to-date market information.
If it takes manufacturers and distributors three weeks to update prices, and commodity prices shift rapidly, then prices aren’t reflecting what’s going on in the supply chain. And businesses could end up leaking serious profits as a result. But with the right analytical tools and intelligence, businesses can benefit from making better decisions across the entire ecommerce pricing process despite ever-changing factors than threaten their business.
PROS Dynamic Pricing
Today’s dynamic pricing innovations are delivering new levels of control, enabling leaders to coordinate pricing across customer channels with ease and precision. In fact, these capabilities are becoming the new norm. And businesses that don’t keep up will fall behind.
PROS Control dynamic pricing management software gives you the fastest way to deliver innovative pricing strategies. By using PROS Control and our CPQ software, you get a comprehensive pricing management solution that easily enables your pricing strategy as well as real-time analysis and precision control of all channels. Use Smart CPQ software to accelerate the sales process and get a powerful, intuitive tool to customize configurations, manage approvals, price correctly, and generate proposals in seconds.
Check out this video to learn more about PROS' dynamic pricing management software.
About the AuthorMore Content by Valerie Howard