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A World Leader in Pricing & Revenue Optimization Science and Software

• Increasingly complex markets and business models   
  Globalization of business organizations and proliferation of product SKUs, lines, distribution channels and customer segments have led to complexity in achieving optimal pricing.
• Increased sophistication of purchasers
  Purchasers have increased access to pricing-related market information and to greater technology resources to process this data. Thus, purchasers have a high level of pricing transparency, which gives them advantages relative to vendors in purchasing processes.
• Proliferation of pricing entities and competitive alternatives   
  Technological advances, in particular the Internet, have driven an increase in the number of potential vendors, distribution channels and product alternatives. This proliferation has exponentially increased the amount of price information that companies must track in order to ensure their offerings are competitively and optimally priced.
• Increase in the quantity of enterprise data
  Widespread adoption of enterprise applications, such as enterprise resource planning, or ERP, customer management, or CRM, and supply chain management, or SCM, systems has produced a substantial amount of enterprise data, including information about individual sale transactions. Companies need ways to aggregate and use this raw data to improve pricing strategies.
• Diminishing return from traditional enterprise applications    
  Companies use ERP, CRM and SCM software products to improve efficiency and drive increased profitability through lower costs. However, as these software products become more widely adopted, companies are experiencing diminishing returns from additional investments in these technologies. Therefore, we believe companies are looking for new ways to improve their financial results. Pricing and its impact on revenue have received comparatively little attention, and we believe companies have the potential to generate a high return on investment by improving price.

• Limited visibility into the pocket price and pocket margin
  The pocket price is a measure of the effective price paid by the customer in a particular transaction after accounting for all relevant discounts, promotions, rebates and allowances. The pocket margin is a measure of the profitability of a particular transaction determined after subtracting direct product costs and other costs attributed to a customer from the pocket price. Companies can face challenges in determining the pocket price and pocket margin of their products due in part to the lack of timely access to relevant data. Without an accurate view of the pocket price and pocket margin, it is difficult for companies to determine the profit contributions of products, customers or individual transactions. Additionally, many companies are often unaware of trends in pocket prices and pocket margins. As a result, they have difficulty in determining the economic impact of changing prices, optimizing current prices or forecasting future prices.
• Lack of uniform pricing and goals 
  We believe most companies do not have a centralized process for managing overall pricing or communicating and enforcing pricing policies consistently across sales channels and business segments. As a result, sales representatives often negotiate and quote prices that do not support corporate business goals or financial targets. The absence of uniform pricing policies and goals across an organization leads to conflicting practices among various internal functions, such as sales, marketing and finance.
• Unscientific, ad-hoc approach to pricing
  Most companies rely on a combination of manual processes, external consultants, spreadsheets or internally developed software tools to conduct pricing activities. We believe current pricing decision support tools often are unable to efficiently process large volumes of data, lack sophisticated mathematical tools or generate inaccurate pricing information. Because of the difficulty in analyzing data in a scientific manner and setting optimal prices, we believe many companies often set prices in an ad-hoc manner. As a result, they are also unable to track prices and analyze pricing performance, such as the response in demand due to price changes.
• Lack of complete, relevant and timely data
  Companies have access to large quantities of data generated by traditional enterprise applications spread across complex global information technology environments. This dispersed data is difficult to aggregate, or make available in a timely fashion. Additionally, internal systems often lack market data and the capability for real-time processing over numerous complex transactions. As a result, most companies today do not have the necessary and relevant information to make data-driven pricing decisions at the time of sale.

• Pricing Analytics
  The ability to analyze market and historical data to provide price insights that might be otherwise hard to identify.
• Pricing Execution
  The ability to propagate pricing decisions to either users or to another enterprise application, such as a CRM or ERP application, in order to offer frontline sales representatives easy-to-use guidelines that help them in quoting a profitable price.
• Pricing Optimization
  The ability to determine and forecast the price sensitivity of a product or a market segment and to generate optimal pricing to achieve business goals such as maximizing margin or improving market share.