You sell many different products to many different customers, and on any given day, what you sell to whom changes – that’s what we mean by mix. Every product and customer can have a different profit margin, so even if you have the same top-line sales from one month to the next, your profitability can vary considerably. You need to understand your mix.
When customers call you for a quote, how long does it take you to get one back to them? If your answer involves the words ‘hours’ or ‘days’, chances are you’re losing business due to lengthy response times.
Customers appreciate having market-relevant pricing available immediately when requested, especially if they’ve been shopping around. Businesses can benefit tremendously – in terms of operational efficiencies, customer satisfaction, win/loss rates, and profitability – by implementing a quoting process that gives customer service representatives the opportunity to close the sale before hanging up the phone. But how do you make that happen?
Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.
Now that we’re about halfway through 2019, let’s talk about the plan you set for the year. How have you performed thus far relative to your plan?
Annual budgeting is the roadmap for strategic planning, and analyzing results is how you track progress toward these goals. When results differ from plan, you find yourself asking why. Month after month you may equate these discrepancies to the hearsay you get from the field — or as market-based — and move on, never truly knowing the why. Then the cycle starts again: new year, new plan, new expectations.
But for every business there is a concrete reason for the gap, and there is a way to remove it: companies need more detailed plans they can accurately measure against.
So, how do you get there?
Getting to the "right" price for your customer can be difficult and time consuming. How do you know you are pricing correctly? How do you create consistency across your organization? And more importantly, how do you maximize your profitability without losing business?
Navigating your way through these challenges usually requires taking a step back to level-set your current processes. So, where do you start?
How good are your BI tools at explaining your data?
A BI tool might report you lost half a point of margin last month or gained two points in revenue, but what’s driving those changes often remains a mystery.
If you’re ready to unleash the power of your data, a pricing business application like Profit Builder can be the solution you need.
Check out the video below to learn more about how Profit Builder works:
Pricing data can be dense. If no one is reviewing it, managing it, comparing it or scrutinizing it, it’s likely your organization is missing price leaks you could otherwise put a stop to. From volume discounts to price overrides, profits are lost and margins are cut, but do you know by how much? Can you identify your true pocket price for your top selling products?
If not, you may have a data visualization problem. But like any problem, a solution exists, you just have to seek it out. Here are four ways to gain better visualization into your organization’s pricing data.
This post originally appeared on Inc.com
Want to make more profit? Just sell more, right? Well, you know it's not that easy. In fact, there's been some dire economic news lately, the gist of which says sales are down across most industries. In the face of falling retail sales and low expectations for a swift recovery, what are the chances your company will be the one to defy the odds and triumph with a record sales season?
You might very well be that exception to the rule. But if you're not, that's OK too--there are other options. Here are the three quick ways to increase your profits without making more sales.
You know how important lean manufacturing and supply chain optimization is to your company. It was true 20 years ago and it is still true today.
Can you do your job proficiently with just business intelligence tools? BI and enterprise resource planning (ERP) tools can be beneficial to your organization in many ways:
They offer summary reporting on key metrics over time and comparing periods
Better BI implementations also support analysis on key attributes, such as customer or product segments and features
Good ERP reporting and BI data visualization can answer many high level questions, such as sales & profit trends, budget to actual performance