In our latest pricing video, Philip Huthwaite shares why pricing automation is becoming more common in businesses, what tools to use and how companies can automate their pricing operations.
Warren Buffet was not wrong when he stated "The single most important decision in evaluating a business is pricing power."
Effectively controlling your pricing does give you a definite advantage in the marketplace. However, if you are still using spreadsheets to manage your prices, a method which is outmoded, and possibly even foolhardy, the future growth and prosperity of your business could be in jeopardy.
Getting paid on time is one of the most frustrating issues for businesses. Customers are never overjoyed to part with their money. But if they are happy with your products and service they are much more likely to pay within the negotiated time frame.
Over the years, there have been many factors that have impacted and ultimately shaped the way we do our weekly food shop. Gone are the days of walking down a local high street visiting the butcher, fishmonger, and greengrocer. Supermarkets changed all of that. And have continued to change the way we shop since their emergence.
With dynamic pricing infiltrating so many aspects of our lives, it is less surprising each time a new industry joins the bandwagon.
Given the popularity of dynamic pricing in travel costs (read more with Pricing Strategies for Tour Operators and Online Travel Agents), it is not a shock that hospitality as a whole appears to be looking at stirring up how they price their businesses.
This is true of hotels and also restaurants, the newest thread of hospitality to join in with dynamic pricing in a bid to increase profits and sustainability.
Chris Pople, Group Pricing Manager at Cromwell (Holdings) Ltd, has huge knowledge and expertise in the area of pricing, having over 12 years of experience in just pricing behind him.
Outside of pricing, Chris loves to stay active, having recently got on his bike. In just 3 years, Chris has clocked up over 12,000 miles and formed the accredited Kibworth Velo Club.
There is a real danger in “race to the bottom” pricing – basically, no one wins.
By automatically diving to the bottom price all you’ve done is dented your profit margin and your reputation – and lowered the perceived value of your product.
This week, we have a guest blog post from Patrick Foster.
Patrick is a writer and ecommerce expert from Ecommerce Tips — an industry-leading ecommerce community on a mission to share myriad business and entrepreneurial insights from the sector.