Pricing

A Snowball’s Chance in Pricing

By Vendavo
December 4, 2013

Snowballs actually thrive in pricing.  They never melt away, they just grow.  Until they break.

In most companies, the pricing function grew out of an administrative necessity. A new product needs a price at launch. Sales needs a discount for a big deal. A spreadsheet is born. A snowball.

The snowball starts small – tended by one person, maybe even part-time. They roll in a list. Then, a volume discount matrix. Then, a price list by region. A small team is formed to keep rolling the snowball.

Leaders in the company start to realize how important pricing is to the bottom line.  The spreadsheet is promoted to being a “master” spreadsheet. The team adds margin rules for deal approvals. New discount programs. Analysis of past pricing. Transaction data, pivot tables, charts, macros. The team grows, and manages a whopper of a snowball.

As a kid, I remember rolling snowballs around to get it snowman-sized. They often broke while rolling. I’d shrug it off, mash the pieces back together, roll it a little more. Break, fix, roll, repeat. Works fine for Frosty.

But, your snowball got big because the company realized how important pricing is. In fact, you know there is so much more you can do, you want the snowball to get even bigger. But, the bigger it gets, the more it breaks.

You can’t afford for your pricing to break. And, your goal isn’t really a giant snowball anyway – it is profitable pricing. Top companies are realizing their pricing can’t run on a snowball, and they’re swapping them out for enterprise pricing solutions like Vendavo.

Are you ready to let Frosty go?

  • B2B Pricing , Pricing Organization , profitability , profitable pricing , snowball , spreadsheet

    Vendavo

    Vendavo harnesses the power of Big Data to generate actionable insights that enable businesses to sell more profitably. Our margin and profit optimization solutions help global customers make better data-driven decisions for pricing and sales effectiveness. Using cutting-edge analytics and deep industry expertise, Vendavo boasts the largest number of implementations for B2B enterprises in the industry, having helped more than 300 company divisions dramatically increase revenue, improve profit margins and maximize shareholder value. Located across the globe, Vendavo is the solution of choice for Global 2000 companies in industries such as chemicals, industrial manufacturing, high-tech, and distribution.