Learn how one food service provider injected science into prices, self-service into reporting capabilities, and improved gross margin each year without losing volume with Zilliant Price IQ® and Price Manager™.
Evolving Pricing Precision from A to Z(illiant)
The dynamics of the food services provider 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 food services provider 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.
This led the team to develop 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. Additionally, Zilliant’s solutions had a proven track record of analyzing massive amounts of transactional data, the flexibility to toggle revenue and profit aggressiveness, and offered visual analytics dashboards. Zilliant also fit into the food service provider’s long-term digital transformation journey.
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. The implementation of these solutions was an essential step in the company’s overall digital transformation.
Today, the company has stabilized its gross margin, with incremental improvement each year, and is staying ahead of inflationary pressures.
If using Zilliant’s pricing solutions to inject science and self-service into your pricing process sounds like it could add value to your organization, please consider joining us at MindShare 2022, June 13-15 in Austin, Texas. You’ll have the opportunity to hear the full story of how this food service provider leveraged Zilliant solutions to evolve its pricing and kickstart its digital transformation journey, as well as hear many additional case studies on how B2B companies have worked with Zilliant to Power Intelligent Commerce. Visit https://www.zilliant.com/mindshare-2022/ to learn more and register today!