Businesses today are feeling the squeeze on their margins. The available market in many industries isn’t expanding, leaving companies to fight over share. In fact, 78% of sales teams are reporting that their quotas have increased, with only 24% being very confident they can achieve them. At the same time, procurement departments have far more access to information to easily shop the competition. It’s easy to feel out of control. But there’s actually a lot you cancontrol—and it begins by taking a good hard look at your pricing and quoting capabilities. So where do you start? How do you even know if you’re on the right track?
This PricingBrew research report identifies 10 areas where pricing best practices have been redefined, setting new benchmarks for pricing excellence in B2B. It’s a great place to start to see where you stand.
Pricing Best Practices:
- Improvement focus– Rather than assuming that prices are accurate and that the problem lies with the approval processes, focus on the quality of your price points. In other words, have you laid the foundation to consistently deliver the right price, or is your hyper focus on efficiency just going to drive through more bad prices faster?
- Price segmentation– Real and robust price segmentation is the key to determining the effectiveness of nearly every other pricing-related activity. The greater the granularity in segments, the greater your pricing power.
- Market response– Are you putting prices into the market and hoping for the best? Here’s a better way: measure price response and use it to set better prices that are less risky.
- Pricing technology – Smart technologies can do things like analyze data and recommend optimal actions faster and more accurately than humans can every hope to.
- Sales force guidance– Instead of expecting the sales team to analyze data and know what prices and discounts are appropriate, it makes a lot more sense to give them the answers they need. Leading companies are using the power of AI to provide this pricing guidance—and achieving game-changing results.
- Sales force metrics – Don’t just measure and incentivize your team based on revenue. Also measure them on pricing and discounting performance and include “price attainment” metrics into your incentive compensation plans.
- Pricing governance– Centralized control over all pricing decisions can be painful, and it can work against you. A better way is to build centers of excellence around pricing, which provides oversight and promotes cross-functional collaboration.
- Depth of coverage– Deal-level decisions are important, but you can also enhance your pricing capabilities in the early stages of product development to control pricing decisions with the greatest influence on margins ahead of the transaction, and much further upstream.
- Breadth of coverage – Pricing done right is much more than finding the right price and discount; it’s also about developing an analytical and data-driven decision-making capability.
- Innovation & change – The worst thing business can do today is cling to the status quo and resist change. It’s important to stay ahead by embracing innovation and the change that comes with it.
Read the full report and use it to assess your own capabilities to see where you stand—and what it will take to catch up.
About the AuthorMore Content by Valerie Howard