Price guidance gives you the opportunity to raise your prices, limit options, offer tiered pricing, move away from transactional pricing, and stay ahead of the competition with intelligent pricing models and actionable price strategy. This is especially true when that guidance comes from trusted pricing tools. 

In the past, price optimization would always have been done manually. And while it’s still possible to manage prices this way, it’s far from the best solution for most companies.

Manual price optimization leaves a company open to a range of problems and price sensitivity blind-spots, which can significantly hamper optimization efforts. Compared to using a price optimization solution, These include the risks of human error and the time constraints that those managing price optimization manually will inevitably be under.

Software used to manage price optimization relies on the power of data. It analyzes a large range of different metrics that have been hand-picked to provide a company with the most accurate calculations for its specific pricing requirements. Metrics are continuously monitored by pricing optimization software, with all analyses available for team members to explore in real-time. The software uses these figures to determine the best possible pricing at any given time. 

Discounts are often considered as a total instead of their individual parts, which impacts sales cycles. Simply, total discounts are made up of negotiated discounts and volume discounts. By isolating volume discounts, better segmentation allows sales teams to have more negotiating power and can be more aligned with their customer’s willingness to pay.