People set up businesses to cater to the needs of people.
They also want to make a lot of money.
This is exactly where pricing optimization comes into play. It is important to first understand what exactly pricing means. Simply put, pricing is the process of figuring out how much a company will receive for its products. Pricing optimization becomes important because it helps the company conclude exactly how much they can charge for its product. Pricing optimization fixes loose ends and makes sure that the company gets the optimum value for its product. This in turn will help in increasing the company’s Net Operating Income (NOI).
In order to maximize the revenue by maximizing the sales, a company should set a price band for its products by keeping in mind the target customer base and the market conditions. Pricing optimization has gained a lot of importance in the recent years, especially during the phases of product marketing and sales strategy design. There are many factors which aid the company’s decisions while optimizing the pricing. Some of these include:
- Position of market, considering the pricing set by your competitors
- Deciding who your customer is
- The metrics on which the price will be based
- Return-on-investment involved
- Lifetime of the product in question
Here are three Pricing Optimization systems which will hopefully help any company maximize their profits:
1) Vistaar – Configurable Pricing Software
Vistaar’s price software allows companies to improve their pricing tactics through the use of its SaaS offering.. Along with SmartPrice, the company also offers various services like price list management, customer and product profitability and bid pipeline management functionalities. Vistaar also offers service-based solutions and on-site solutions. Their module is service-based, which helps them to build particular functionalities for customers.
2) Zilliant – Optimize Your Sales Decisions
Driven to make B2B companies run smoother and faster, Zilliant promises to help companies grow by a 5 to 10% margin. Their flexible SaaS model aids companies to significantly improve their performance by “Integration” into pre-existing systems. Zilliant’s four P’s gives insight to its price optimization model. The Four P’s are
- Prediction – Because when a company reaches the point of hindsight, it is generally always too late, Zilliant makes sure you are always two steps ahead.
- Proof: As mentioned above, Zilliant has proof of making companies grow by 5 to 10%.
- Platform: Here, Platform refers to Software-as-a-Service Optimization Platform, and last but not the least.
- Partner: A partner is vital to any business, any by partner here, we mean a customer, if a customer is happy, we know for the sure the company is happier.
3) PriceMaker Pro – Profit Maximization for Smart Retailers
Price Maker Pro seems to be a favorite with many companies for two reasons:
- It functions perfectly well with both Windows and Mac and easily connects to any financial management software or any POS.
- It claims to be the most inclusive pricing management software.
PriceMaker Pro also has a lot of other helpful tricks like Cash Flow Analysis, Pont Diagram KPI Analysis, Inventory Turnover Scenario Analysis, Open to Buy (OTB) Analysis, Competitor Pricing Behavior Analysis, Value added Pricing Analysis etc. This maybe a biased call, but my money is on this one.
