Custom software refers to tailor-made software specifically designed to meet your business requirements. Unlike off-the-shelf software, custom-designed software has all the features that your business could ever need.
Pricing is an essential aspect of your business operations. It defines your product’s worth and lets customers know your product is worth their time and investment. Your pricing strategies will determine the profitability and survival of your business in the competition.
Strategic pricing is not an easy task, and many companies use advanced price management software with AI and Analytics integrated. Whenever you buy pricing software, always opt for custom pricing software. Here are a few reasons why custom pricing software is right for your business.
Helps Increase Price Margins
Pricing strategies can make or break your business. There are numerous pricing strategies available, and it can be a daunting task to choose the right pricing strategy for your business.
Off-the-shelf pricing software has limited functionality in terms of pricing strategies. There is a possibility the pricing strategy you want is unavailable or cannot be included in it.
However, when you choose custom price management software, you can define value drivers that form the foundation of your logical pricing strategy that works best for your organization. You can also ask the developer to integrate custom algorithms into the software to support business requirements.
Manage and Optimize Price Waterfall
Price waterfall refers to an analysis method where businesses find money leakages and hidden costs at every price level. Price waterfall analysis helps businesses know actual revenue in each transaction. To improve the bottom line, businesses should follow the waterfall analysis. Off-the-shelf software might help find money leakage and hidden prices, but it won’t help reduce the money leakages.
Custom pricing software has in-built algorithms to manage and optimize price waterfall. The software can not only optimize list prices but also find the price impact on customer’s net prices.
The software can cover all pricing elements like rebates, discounts, global prices, and regional prices to efficiently manage and optimize the price waterfall.
Capture Price Feedback
Price wars are common in the corporate world. Leading businesses use competitive prices to position themselves against competitors. Price is not only related to revenue generation or profits. You also need to understand how a customer perceives your price(increase, decrease, or stationary).
Most off-the-shelf pricing software does not have advanced capabilities like capturing price feedback, but your custom-built software can include this feature. The inclusion of price feedback features allows businesses to know about market/customer sentiments about their products and pricing.
If the customer feels the price rise is not justified, they may choose an alternative product (competitor’s product) which is a loss of revenue for your business. Custom-built pricing software has intelligent features that can capture customer feedback from the sales force and tell you whether the prices are aligned to the market.
Off-the-shelf software is more likely to have a steep learning curve as this software is built for the industry in general and not for the specific requirements of your business. As a result, the dashboard might be cluttered with several options that your employees do not need.
On the other hand, custom pricing software has customized dashboards that are relevant to your business in particular, and hence are easier for employees to use.