Protect margins with price optimization
Lack of insight into current and future demand, rigid or overly simplified rate formulae, increasing competition – all of these can dampen the effectiveness of your pricing strategy and erode margins. What if you were able to equip your pricing consultants with a much deeper understanding of the impact of their pricing decisions? With the right technology in place, pricing has the potential to be a powerful profit lever.
How to price your products and services for maximum profitability
Quintiq’s advanced analytics technology uses your historical data to predict customer behavior. It factors in market trends in order to prescribe optimal prices for new and existing products and services. Prices are determined dynamically by algorithms that measure price elasticity, taking into account market rates, supply, demand and other market forces. Your pricing consultants gain meaningful insights into the financial impact of pricing decisions, helping you to protect your margins and optimize product mix. With in-depth hurdle rate analysis, you'll know at precisely what point a product or service becomes profitable. In the longer term, you'll know when you can raise prices without losing the market, and when it's time to lower prices in order to drive capacity.
Consistent, accurate pricing
Because it’s supported by historical data, the consistency and accuracy of Quintiq’s price optimization solution is assured. By ensuring pricing integrity, you avoid arbitrary decisions that erode your customers’ trust in your brand.
Fast, smart and confident decisions
A price optimization solution reduces manual effort, along with all the pricing anomalies and costly errors that come with it. Your consultants can now focus on value-added activities such as reviewing pricing strategies, managing pricing campaigns and evaluating tender-bidding processes. Your consultants can create what-if scenarios to see the consequences of their decisions before making them, and measure the impact of their decisions on the company’s overall profitability. This increases the speed and confidence of their decision-making.
Capturing the highest acceptable price every time
A price optimization solution not only gives consultants real-time visibility of capacity utilization, but also recommends the prices they can quote to customers. The solution factors in last-minute changes (e.g. order cancellations) to determine capacity and pricing in real time. At the final stage, the consultant applies his or her invaluable judgment to select the most appropriate price from the recommended range. You can also use the system to monitor the accuracy and performance of each consultant over time.