Pricing Maintenance and Optimization Software
Manage Prices centrally in a flexible way, provide quotes to customers through CPQ, and Optimize Prices by analyzing and simulating large amounts of data with IMA360’s pricing software powered by AI.
Use case for Pricing Software
Pricing Software simplifies and automates the pricing process, allowing business to focus on revenue growth and profitability by leveraging pricing optimization. It also aligns internal departments for centralized decision making and provides one source of truth for all teams.
Benefits of IMA360's Pricing Solution
Streamlined pricing process
Our pricing software simplifies and streamlines the pricing process, allowing businesses to focus on their core competencies, and increase operational efficiency.
Single source of truth
Maintain all prices, discounts, and rebates. Real time integration with ERP, CRM, E-commerce solution to allow multi-channel ordering and quoting.
Negotiate better deals
Negotiate better deals with visibility into margins during quoting and contracting. Analyze customer’s purchase history and long-term value.
Improved decision-making
Real-time pricing analysis and integration with ERP systems ensure that businesses have access to accurate, up-to-date information for making data-driven pricing decisions.
The Role of Strategic Pricing Optimization
A well-designed optimization model can serve as a powerful tool for price optimization, helping companies to analyze various pricing scenarios and predict their impacts on sales and profit. It uses a combination of historical sales data, customer behavior, and market conditions to simulate different pricing scenarios, offering valuable insights into the possible outcomes of different pricing strategies.
These insights, combined with real-time data and predictive analytics, allow businesses to not only set the right initial price but also adjust their pricing over time. By optimizing the price in response to changes in demand, competition, and cost, businesses can significantly improve their profitability. Pricing optimization solutions, which often use advanced algorithms and machine learning, can analyze vast amounts of data and automate the price optimization process, making it more efficient and accurate.
Three Aspects to Pricing Optimization
- Price Elasticity - Overlap between Economics and Customers
- Price Discrimination – Overlap between Customers and Competitors
- Price Competition – Overlap between Economics and Competitors
- Price Optimization – Overlap between all
Understanding the Basics of Pricing Strategies
Pricing strategies often focus on one main approach: Getting the highest price customers are willing to pay for a product or service. Different products are priced differently, and each product is designed to cover a specific market segment. Common pricing strategies include value-added pricing, competitive pricing, and cost-based pricing. This model has become the basis of business and marketing strategy, product design and customer experience.
Cost-Plus Pricing
One of the most common pricing strategies in the past has been cost-plus pricing. This involves calculating the cost of production and then adding the profit to determine the final price. This is a simple method that businesses have been using for years. However, this model often underestimates the price customers will be willing to pay, which can lead to missed potential revenue.
Competition-Based Pricing
Competition-based pricing, another traditional strategy, involves setting prices based on what competitors charge for similar products or services. This strategy requires a detailed market analysis and an understanding of where your product stands in its product category. It also requires businesses to respond quickly to changes in the market to maintain or capture market share.
Value-Based Pricing
In value-based pricing, the price is determined based on the price of the product or service to the customer, not the price of the product or the competitor. These strategies require a deep understanding of your customers’ buying habits and value perceptions. The challenge is to measure this value accurately and find a reasonable price that the customer is willing to pay.
IMA360 Pricing Solution – Key Features
Maintain and Optimize Pricing with industry specific Pricing strategies. Gain real time price insights with IMA360 price optimization solution and make better decisions by leveraging the AI driven optimized pricing.Â
Price Setting
Single central repository to maintain all prices, discounts and incentives and transfer the data to ERP, CRM and Legacy solutions in real time.
Pricing Governance
Maintain control over prices and discounts to avoid excessive discounting with compliance management and automated workflows.
CPQ
Create quotes and analyze margin at the time of creation. Workflow based approval process for any quotes which don’t follow margin guidelines.
Advanced Analytics
Analyze historical data to learn about trade win rates and profitability and uncover cost leaks. Visualize pricing information by running price waterfall and funnel charts.
Price Optimization
Use price optimization software to simulate multiple pricing strategies and compare them to choose the best strategy that fits your business goals. Optimization at customer or business level across multiple sales channels.
Price Catalogs
Create price catalogs and communicate with customers via the IMA360 collaboration portal, EDI 832 or Excel files.
Transforming Your Rebate Program
CHALLENGE
Scenario Description: Imagine your company is facing challenges in optimizing pricing strategies due to rapidly fluctuating market conditions, increased competition, and changing customer preferences. You’re finding it difficult to determine the right pricing for your products to maintain profitability and remain competitive.
SOLUTION
Integrate IMA360’s solutions with your existing ERP system to gain real-time visibility into deal-specific profitability, enabling informed decision-making during customer negotiations or when quoting product prices. Furthermore, IMA360’s pricing solutions use historical data to provide forecasting projections for future sales and help you strategize considering factors such as price elasticity, competitive landscape and inventory position and suggests the optimal price, considering off-invoice adjustments applicable to specific customers and products.
EXPECTED OUTCOMES
By utilizing IMA360’s pricing solutions, your company can expect to achieve numerous benefits, including:
- Increased profitability through optimal pricing strategies and improved cost management.
- Better understanding of market conditions and customer demand, enabling your company to adapt its offerings and stay competitive.
- Improved decision-making based on real-time data and accurate forecasting, reducing the risk of over- or underpricing products.
- Streamlined pricing processes, saving time and resources while minimizing human errors in pricing calculations.
Ready to Transform your Pricing
Are you ready to take your pricing strategy to the next level? Schedule a demo or contact our IMA360 team today to learn more about how our AI-powered pricing solutions can help your business optimize pricing, maximize profitability, and stay ahead of the competition.
Get in touch with us today and let us transform your business from the ground up!
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FAQ
Price optimization software uses sophisticated algorithms to analyze market data, consumer behavior, historical sales, off-invoice deductions, rebates, cost and competition in order to assist firms determine profitable pricing that optimize revenue and sales.
Software programs with pricing tools that help in establishing, modifying, and overseeing prices in accordance with market information, rivalry, and demand patterns in order to implement competitive pricing strategies.
To ensure competitive pricing and maximize revenues, price optimization and management software combines capabilities for determining the best prices and controlling them across a range of sales channels.
Use price optimization software to monitor market trends, rival prices, and consumer behavior in order to optimize the pricing of goods and services. This allows for data-driven modifications in pricing and profitability.
Pricing software automates the manual pricing tasks, enhances communication between sales and pricing teams, uses algorithms and data analysis to predict optimal prices.
Analyze and suggest the best possible pricing for products and services and allow prices, discounts and surcharges to be maintained in mass by different sales organization, customer, and material attributes.
Pricing software gathers and analyzes the vast amount of historical data, uses algorithms to evaluate competition prices, consumer behavior, and market data. It then suggests the best prices for products and services.
