Pricing software, like many other types of enterprise software, is sometimes seen as a cure-all solution – the solution for every pricing problem.
And while modern software solutions for pricing boast an impressive array of functionalities, such as real-time pricing of goods using multiple internal and external factors, or smart optimization algorithms based on artificial intelligence and machine learning, they cannot solve all pricing problems.
Through our project experience, we have compiled a list of the most important things a pricing solution can do for you, and the corresponding pitfalls.
There are many risks when implementing such software, but also many benefits. What's essential is to manage expectations and be aware of these risks.
One final word of caution: it is crucial to have the basics in place before implementing a solution. As mentioned above, pricing software is not a substitute for a good pricing strategy and the "best" companies understand this. According to the Global Pricing Study 2016, the "best" companies place higher importance on having the right organization, support processes, and methods in place, to proactively steer pricing.
That’s why, compared to the "rest", 44% more of the "best" have a dedicated pricing function in place. In addition, 25% more of them have clear pricing processes, and 27% more have methods to support pricing.
*About the Global Pricing Study 2016: A total of 2,186 companies from over 40 different countries and 25 industries participated in the Global Pricing Study 2016. Respondents, of which 38 percent were C-levels, answered questions on their pricing strategies, price pressure, and the competitive environment. The study takes place every two years and is the only one of its kind.