A Recipe for Intense Pricing Pressure
A lot of sectors have seen a rise in competitors and alternative options for their products and services. At the same time, companies that have disrupted the business markets with their models that sell online have also entered into the mix.
Among all this, buyers have become more aware and they have improved their procurement functions as well, along with development of their capabilities and margin extractions. The procurement groups now have greater influence and have become involved in a larger number of transactions.
Along with all these issues, there are also problems arising in international trade on a number of fronts that have managed to wreak havoc in many industries. Then there is the rising inflation, which is somewhat manageable, but with its volatile nature creates more issues.
Regardless of all these problems and more, sellers still need to sell their product. Companies still have to meet their growth targets, which is why they feel like they have no choice but to change their pricing.
Standing Still Means Falling Behind
Intense pricing pressure is affecting margins greatly. This is why companies need to rework their pricing capabilities as well. They need to give out discounts carefully and make very minute changes in their pricing structure - something as small as this can be a factor that gives your company the edge.
A lot of companies believe that these pricing intricacies can only be made by large sized companies, but that is not the case. Sophisticated pricing technologies are now more affordable and have become easier to implement, which means even smaller companies can develop various pricing capabilities that rival their larger competitors.
Areas of Implementation for Pricing Capabilities
There are a lot of aspects that need to be implemented to ensure even your company reaches its full potential when it comes to its pricing capabilities. These are:
- Improvement Focus
- Price Segmentation
- Market Response
- Pricing Technology
- Sales Team Guidance
- Sales Team Measures
- Pricing Governance
- Depth of Coverage
- Breadth of Coverage
- Innovation & Change
- The market is becoming saturated and all companies need an edge to put themselves on the map, and pricing is the best possible way of attracting attention to your product
- More and more companies are adopting various technologies to improve their pricing capabilities
- Even smaller sized companies can hold the advantage if they implement their strategies carefully and successfully