Better value, greater transparency, and more control of pricing
Understanding the why, how, and when of dynamic pricing for B2B industries.
Imagine if you could price your products and services to reflect the exact market situation, accurately and in real time. All the while, capturing your customers' true willingness to pay. That is the power of dynamic pricing.
Dynamic pricing, the practice of changing prices based on continuously updated data, is made possible by advanced analytics and machine-learning-based pricing models that simulate human reasoning and provide machines with data access to learn.
Historically prevalent in travel, retail, and hospitality industries, dynamic pricing has quickly gained momentum in B2B industries. A key factor for this rise is the sheer amount of data now accessible to businesses, making algorithmic pricing far more feasible.
But it’s not just a matter of data. Making the right design decisions for your pricing engine and navigating the change management challenges are key to successfully implementing B2B dynamic pricing and maximizing your revenue potential.
Why adopt B2B dynamic pricing? And why now?
In today’s dynamic business landscape, adopting B2B dynamic pricing is a strategic imperative. Dynamic pricing will help you to:
Dynamic pricing is a powerful tool to tackle inflation and cost changes on an ongoing basis, allowing companies to adjust their prices in real-time and respond to market fluctuations to maintain profitability.
Dynamic pricing allows for optimized pricing at a transaction level that can accurately reflect the ever-evolving market dynamics and volatility.
By adopting a dynamic pricing approach, businesses can build sustainable pricing structures that are flexible enough to cater to various market conditions and situations, ensuring long-term success.
When used in conjunction with raw material index forecasting, dynamic pricing substantially increases its competitive positioning in the market. By strategically deploying forecasting techniques, businesses can estimate the future movements of these indexes in the weeks and months ahead. It can be applied to a vast array of raw materials, encompassing an expansive spectrum of over 300 indexes – from indexes for widely utilized chemicals such as Acetic Acid and Methanol to specialized compounds like agricultural chemicals to metals like Lithium.
Elevate your B2B pricing strategy with Simon-Kucher
At Simon-Kucher, we offer a comprehensive solution to help businesses navigate the complexities of B2B dynamic pricing successfully. We bring together industry experts, dynamic pricing specialists, and data scientists to build robust dynamic pricing engines and architectures. Get in touch with us today to learn more about how we can help your business stay ahead of the competition through effective B2B dynamic pricing strategies.
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Suboptimal pricing can make or break a business, creating a domino effect across all steps in your strategy. Robust dynamic pricing engines and architectures take the guesswork out of pricing, helping you to navigate market fluctuations and stay ahead of the competition.
Working in conjunction with specialists from Simon-Kucher Elevate, we adopt machine learning where it makes sense, ensuring a holistic approach to pricing strategy, organization, data science, and technology advice.
Get in touch with us to learn more about how we can help your business craft an effective and impactful B2B dynamic pricing strategy.