Curious about the key economic trends in Q3 2024? Mike Slavin, Business Consultant at Vendavo, breaks down what’s changed (like falling interest rates) and what hasn’t (hello, volatility), plus explores how businesses can stay ahead. Here’s why agility, data-driven pricing, and managing off-invoice programs are more important than ever.
The economic landscape continues to shift in some areas while staying steady in others as we move through 2024. The only thing certain is uncertainty . But there are some important changes to note as we head into the final quarter.
Let’s explore what’s changed and what hasn’t in 2024.
What’s Changed
- Inflation is under control…sort of
Inflation in the United States appears to be settling, but that really depends on who you’re talking to. Some view inflation as a solved issue, while others see it as an ongoing challenge. Federal Reserve Chairman Jerome Powell is optimistic, saying, “With an appropriate dialing back of policy restraint, there is good reason to think that the economy will get back to 2% inflation while maintaining a strong labor market.” Either way, it’s clear inflation is on a different path than it was a year ago.
- Interest rates are falling
One big positive this quarter is that interest rates are finally starting to dip. The Federal Discount Rate dropped from 5.5% to 5.0%, which will make it easier for commercial banks to borrow money. This should increase credit availability and lending activity across the economy. Everyone agrees this is a good thing, but experts are still waiting to see how much it will really help.
What Hasn’t Changed
- The recession hasn’t hit in the US
The U.S. economy didn’t fall into a recession as many had feared it would earlier this year. That’s great news, but there’s still a sense of uncertainty. The economy has had a soft landing, but questions remain about how we got here. If we’re ever hit with a recession, rest assured, Vendavo’s got your back.
- Economic uncertainty is still at thing
Inflation may be stabilizing and the economy has avoided a recession, but that feeling of uncertainty hasn’t gone away. Businesses are still hesitant to make big investments, which means the uncertainty may stick around for a while longer.
- Key sectors are still seeing upheaval
Volatility hasn’t gone anywhere. It grew to a major issue at the start of the pandemic and is still causing problems in 2024. Industries like energy, shipping, and logistics are dealing with unpredictable fluctuations, making it hard to plan long-term.
- Businesses are still focused on growth
Despite the challenges, businesses haven’t given up on growth. Finding and retaining customers is more expensive than ever, especially in manufacturing and distribution. Growth, loyalty, and off-invoice programs are still top of mind.
- Agility is critical
Being agile is still key to survival. Companies need to understand what’s happening in the market and act quickly. Pricing professionals need tools that help them spot opportunities and address margin erosion.
- Blanket price increases are off the table
Customers still resist across-the-board price hikes, so businesses need to be smarter with their pricing strategies. Broad price increases aren’t working anymore. We must instead focus on targeted, defensible moves that are backed by data. This is where sophisticated pricing tools come into play, allowing for precision and flexibility in pricing decisions.
We saw some encouraging changes in Q3 2024, but many of the challenges businesses faced earlier this year remain. To succeed, businesses must focus on agility, analytics, and strategic pricing. Having the right tools in place can help.
How the Right Solutions Can Make a Huge Difference
As businesses work to adapt to shifting trends, they need solutions to help them thrive. Vendavo is the Complete Growth and Profitability Suite, which combines pricing, CPQ, and rebate management solutions with AI-driven guidance so you can manage millions of prices without breaking a sweat.
- Rebate & Channel Manager
Manufacturers and distributors need a robust platform to manage off-invoice programs, including rebates and incentives. Rebate & Channel Manager simplifies rebate management so businesses can better track performance, increase profitability, and reduce administrative headaches. - Vendavo Pricepoint
Businesses have to be able to implement pricing strategies that are both strategic and defensible. Vendavo Pricepoint offers a data-driven approach to pricing so companies can focus on what’s most effective, ensuring price changes are justified and supported by market data. This helps maintain customer relationships while protecting profitability.
- Intelligent CPQ
As market conditions shift, being able to deliver accurate, real-time quotes is key. Vendavo’s Intelligent CPQ uses AI-driven insights to ensure sales teams can confidently offer the right price at the right time. It simplifies complex pricing and product configurations, allowing businesses to quickly respond to market changes while protecting margins and improving customer satisfaction.
- Margin Bridge Analyzer
Pricing and sales teams must stay agile in today’s unpredictable environment. With detailed insights into price and margin performance, businesses can make smarter decisions based on data, not gut instincts. Margin Bridge Analyzer helps companies understand period-over-period changes in revenue, identify opportunities for margin improvement, and quickly react to market fluctuations.
In short, Vendavo’s suite of solutions empowers businesses to be more agile, strategic, and data-driven in their approach to pricing, rebates, and overall profitability. This helps businesses survive – and thrive – in shifting economic environments.
Ready to Get Ahead?
Vendavo has been powering the profit transformations of global manufacturers and distributors for more than 25 years. A successful profit transformation requires unified pricing, selling, and rebate management – and that’s what Vendavo does best.
Ready to take your growth and profitability strategy to the next level? Reach out today to request a demo.