The stampede for B2B price optimization

By Edward Gorenshteyn
August 15, 2011

Among a lot of other very useful (and some less useful) market insights, buried deep in the recently released Gartner MarketScope report is an interesting detail. In its 2011 MarketScope for Price Optimization and Management Software for B2B, Gartner claims that “in 2010, more than one-quarter of the calls that Gartner received from clients and prospects were inquiries about the potential for price optimization in generating guidance for sales forces.” One can imagine this to be a significant volume of calls.

 What’s clear is that this is a positive bellwether for future growth of the B2B Pricing Market and Optimization market. More and more B2B companies are coming to the realization that critical to an effective sales kit are tools that enable sales to make better pricing decisions and hold the line during negotiations; anything less is like sending a lion tamer into the ring without her whip.

ZebraStampede_BlogThumbnailLess clear is what’s driving this somewhat sudden uptick in interest regarding pricing optimization. Most importantly, why now? Like Gartner, at Vendavo we are close observers of the pricing space. Our ears to the ground, we have heard the sounds of the approaching stampede for some time. Our conjecture has been that, as the number of use cases for pricing software continues to grow and more firms recognize pricing as strategic, executives responsible for profitability have increasingly turned to pricing optimization solutions.


For this reason, we have invested in building the tools pricing leaders need to execute analytics, set optimal pricing and maintain margins at the point of negotiation.

Last week’s MarketScope report seems to support this view. Gartner awarded Vendavo its highest rating for a pricing software vendor, a “Strong Positive.” The reasons for this rating that makes us gleam with pride? Gartner says that it’s specifically Vendavo’s “focus and visibility in B2B markets,” as well as product strengths in pricing analytics and deal management; this has positioned the Vendavo to successfully address the needs of a growing segment of B2B companies that have recognized pricing software as a mainstream solution.

The net net? A growing set of forward-thinking companies are recognizing that the setting and maintenance of optimal pricing is a fundamental imperative to remain competitive and deliver shareholder value. As this happens, prospects are increasingly picking up the phone and calling Gartner about how to provide their sales force with effective pricing guidance.

After all, it’s all for not if your sales force isn’t armed with the tools to take advantage of your company’s emerging capabilities in pricing.


  • Defend Price , Pricing Effectiveness , Pricing Framework , Pricing Hero , Pricing Managers , pricing software , Pricing Strategy , ricing Optimization , Strategic Pricing , vendavo

    Edward Gorenshteyn

    Edward Gorenshteyn has over 8 years of experience spanning marketing, strategy, project management and consulting. Prior to Vendavo, he worked as a BPM consultant and business analyst implementing process automation and CRM projects for companies in specialty chemicals and healthcare. Edward worked on the E-Prescribing (eRx) initiative at Blue Shield of CA, implementing system updates to automate prescribing operations and launching programs to drive eRx adoption among key California physicians groups. At Vendavo, Edward serves as Director of Product Marketing. Edward earned bachelors degrees in Political Science and Slavic Studies at University of California at Santa Barbara and an MBA degree with an emphasis in Marketing Management from Leavey School of Business at Santa Clara University.