This post was originally published on PricingBrew.
It may seem counter-intuitive to bring in an outside pricing partner when you already possess expertise in-house. However, with benefits ranging from access to leading pricing technology to insights into cross-industry best practices, the right pricing partner can help even experts magnify the impact they are able to make.
That said, not all pricing partners are created equal. Typically, pricing partners fit one of three categories:
Pricing ConsultantsThese partners focus on high-level strategy development. They will typically work with you to wade through your data – including invoices, product information and customer details – to develop a foundational roadmap for future pricing decisions.
However, pricing consultants usually do not help you implement the pricing strategies they develop. They may refer you to an affiliate software vendor, but it will be up to you to extract results from the solution they recommend.
Pricing SoftwareToday’s pricing software leverages powerful, predictive algorithms to help answer critical pricing questions, such as how to adjust pricing on your products or what margin will optimize profits and sales.
However, depending on your ability to accurately identify and quantify your organizational needs, you risk purchasing a system that may be over- or under-engineered for your specific circumstances. Additionally, the system may not be able to offer actionable guidance on the data it produces.
The Comprehensive Partner: Consulting + Software + ImplementationThis pricing partner is positioned to customize a software package appropriate for your organization, train you to generate actionable data, help you make pricing decisions and help you implement new pricing behavior effectively throughout your sales organization.
Perhaps most importantly, a comprehensive partner can help you view your business from arm’s length, giving you the right perspective to make order out of a complex, chaotic pricing environment. As a result of this clarity, you’ll know what to change, how to change it and how to measure the results of your change.
Of course, every company is unique, and your specific needs may point you to any one of these partners. By diligently assessing the options available to you, you’ll be able to find the pricing partner that will bring you the results you seek.