Read this eBook to learn how a global services company injected science into prices and improved gross margin without losing volume with Zilliant Price IQ® and Price Manager™.
[EBOOK] Evolving Pricing Precision from A to Z(illiant)
The dynamics of the services industry are complicated. While companies can charge a premium for value-add services, the margins are usually thin and gross margin is the key financial indicator.
The director of financial planning and strategy at one global services company saw the gross margin trend line going in the wrong direction. There were also additional pricing pain points, including an absence of the ability to make granular changes to customer-specific agreements, as well as a lack of visibility into how prices were performing, how sales reps were discounting, and how a price change affected volume.
A closer look revealed that pricing processes and strategy lacked rigor and focus. In fact, there was no science involved at all, and gut feel was still the primary pricing driver. The company would make blanket increases regardless of history or price elasticity. There was still heavy reliance on manual processes and spreadsheets.
The company’s leadership team developed a plan for what was needed to turn around gross margin performance: a steadfast scientific approach to pricing, a system to handle high transaction volume, and comprehensive pricing analytics. Eventually, the company realized Zilliant was the partner to make it more scientific and ensure more self-service in reporting capabilities.
The company implemented Zilliant Price IQ® and Price Manager™ to deliver highly precise, customer-specific prices while helping stay ahead of inflation. Additionally, the visual analytics within these pricing tools opened a world of possibilities, allowing for strategy simulations based on profit or revenue goals that guide better business decisions and illuminate areas for improved pricing performance.
Download the eBook below - "Evolving Pricing Precision from A to Z(illiant)" - to learn how this global services company stabilized its gross margin with incremental improvement each year, and why the implementation of Zilliant solutions was an essential first step in the company’s overall digital transformation.