Optimising a pricing strategy is essential for winning and keeping customers in the field of manufacturing. Producing and then selling a product to a customer for more than it costs might sound simple, but it is, unfortunately, not.
Price optimisation is the process of finding the right price level so that you can sell the most products to increase the market share. If the prices are too high, the volume might be too low. And if you set your prices too low, the unit sales volumes might be high, but costs increase and profitability suffers in this case.
The right set of tools can make a big difference in pricing.
For every 1.00 spent in manufacturing, $1.40 is added to the economy. This is the highest multiplier of any sector.
of manufactured products were up by an average of 21.8 percent year on year.
of manufactured products were up by an average of 21.8 percent year on year.
of EU's exports were manufactured goods.
Here are the core challenges that exist in price optimisation in manufacturing:
If you want to have the optimal prices for your products you need to know the price elasticity for that product. With this information you can determine what you should do - increase it to optimise profit or decrease it to sell more and increase revenues.
Within an organisation a lot of knowledge is hidden in the heads of managers. When these managers leave the organsiation the knowledge could also be lost. For business continuation knowledge assurance is highly needed.
Managing prices based on spreadsheets, manual, repetitive tasks or guesswork is often ineffective and very time-consuming. Pricing with static tools such as Excel or based on the gut feeling is time-consuming, error-prone and almost impossible to organise in a structured way.
With the help of SYMSON, manufacturers can avoid the complex, manual work based on spreadsheets and gut-feeling and, therefore, unlock the fullest pricing potential and increase margin. The software will let you get crucial insights into customer behaviour that will eventually help you understand the market better. There is no doubt that business rules play a critical role in an efficient operation of an organization. SYMSON will also enable you to implement your own in order to ensure compliance, set expectations, provide guidelines on work performance and help organizations automate their processes.
