PRICING STRATEGY & MODEL
In B2B, pricing is not just a number: it is a strategic lever to optimize margins, position yourself correctly against competitors, and manage the value perceived by customers.
Value for customers
A pricing model is a set of rules and criteria that determine and update the selling price of a product or service for a specific customer at a given point in time.
Formalizing and creating an advanced pricing model that aligns with your strategy and objectives is essential to controlling margins and growing profitably.
Why Alyant
Revenue and margin results are largely driven by pricing decisions. For B2B companies, the mechanisms by which prices are set and updated over time can be much more complex than those in B2C companies, for at least one of these four reasons:
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The same product can be sold at different prices to different customers and in different territories.
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Products can be highly customized.
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The value or volume of the order or contract impacts the expected price level.
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The salesperson typically has the ability to adjust the "price" for the specific sales opportunity.
Whether your company manages multiple price lists with hundreds of thousands of items or offers customized products or solutions, we have the experience and expertise to design and implement advanced and dynamic pricing models and update processes (capable of adapting to new external or internal conditions).
Challenges
The main decisions and challenges companies need to face to improve profitability and successfully compete on the market.
Pricing Segmentation
How can we use historical data and internal expertise to create a pricing segmentation that takes into account strategy, product price sensitivity, and customer willingness to pay?
How can we automate and optimize price revisions based on cost changes?
Cost Impact on Pricing
Pricing Triggers and Business Rules
How can we create mechanisms for dynamic revision of pricing parameters (e.g., price lists, customer price lists, or pricing matrices) to optimize volumes and margins?
Pricing Guidance for the Sales Force
How can we "inform, engage, and motivate" the sales force for proper management of manual pricing?
How we help our customers
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Quantitative and Statistical Assessment of Historical Data
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Analysis of Pricing and Margin Influencing Factors
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Positioning, Price Sensitivity, and Price Power/Price Risk by Segment
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Objectives by Segment and Implications for the Pricing Model
Pricing Strategy
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Pricing Model Assessment
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Identification of Strengths and Weaknesses
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Identification of Quick Wins
Assessment of the Current Model and Quick Wins
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Design or Revision of Pricing Segmentation
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Review of Pricing Triggers and Cost Pass-Through Strategy
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Pricing Guidance and Approval Processes for Special Prices
Pricing Model Design
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Pricing Parameter Review Processes
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Sales Force Pricing Responsibilities and Roles
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Prescriptive Pricing Metrics
Processes and Organization
Expected results
Efficient and Dynamic Pricing
An advanced and dynamic pricing model that enables the optimization of prices, volumes, and customer loyalty, in alignment with your strategy and objectives.
Managing
Complexity
Greater ability to manage complexity and adapt pricing and decisions at a granular level (customer – product).
Reduction of Discretionary
Less discretionary pricing decisions through guidance systems for the sales force and the development of descriptive and predictive pricing reporting.