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Smart Pricing. Higher Profit.
Pricing Software
forTransport &
Logistics
Price is the most powerful profit lever
Smart Pricing. Higher Profit. 2
Typical P&L
5
60
35
Revenue %
Profit
VariableCosts
FixedCosts
Impact on profit of a 1% improvement in…
Price
VariableCosts
SalesVolumes
FixedCosts
+ 20%
+ 12 %
+ 8 %
+ 7 %
• Price is the first decision criteria when choosing a transportation service
• Setting the right price for each transaction is challenging
References
Smart Pricing. Higher Profit. 3
10 bad pricing practices that cost millions every year
Smart Pricing. Higher Profit. 4
1. Sales people cannot easily find the target and floor prices for each deal
2. Price is aligned with (or below) competition without consideration of service differentiation and customer perceived value
3. Quotes are based on the average order/usage of the customer without consideration of its true order/usage profile, causing up to 5% error in profitability forecast
4. No systematic workflow to enforce pricing policy and to review/approve quotes with pricing exceptions or non standard costs
5. Negotiated tariff is not correctly implemented in the billing system resulting in customer claims, extra work for billing staff and money left on the table
6. Customer actual orders/usage are not systematically monitored versus their commitment
7. Unprofitable customers are not identified and re-rated
8. Customers at risk due to price significantly higher than market price are not identified and no action is taken to retain them
9. No KPIs and reporting to monitor pricing performance. Sales people do not receive incentives to sell at target prices
10. No regular data-driven process aimed to tune pricing policy on the basis of updated costs and market conditions
Unique On Demand CCRM Technology
Smart Pricing. Higher Profit. 4
CCRM = Customer Centric Revenue Management
Pro
fit In
crea
se
Maturity Stage
Pricing Software Maturity Framework
Smart Pricing. Higher Profit. 12
12-18 months
6-12 months
Optimization : Market Value, Competition
Smart Pricing. Higher Profit. 13
54 avenue Hoche75008 Paris - France
www.openpricer.com
Office
Contact
http://www.twitter.com/openpricer
+33 172 712 510
http://www.linkedin.com/company/openpricer
Thank you!
