Conventional wisdom would suggest that pricing, as a key component of a business’s financial performance, is a critically important discipline within any enterprise, touching many departments, from sales and marketing to finance. And yet, does anyone know whether their company is making the best pricing decisions? TEC Principal Analyst P.J. Jakovljevic is encouraged by the growing awareness and adoption of pricing technologies among B2B enterprises.
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sophisticated pricing technology. For example, a “margin variance waterfall” chart or dashboard, which clearly presents variances of price, costs, volume, product mix, exchange rates, and other margin eroding factors, is eye candy for CFOs. The same holds with “true costs to serve” graphs. On the other hand, segmentation leads to targeted price guidance for the sales force specific to a particular customer and even product. To that end, “margin opportunity” or “profit lift” information