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Determining the right price for a product is a major challenge for many wholesalers. This is not because there is too little data available, but rather due to a lack of useful tools for converting all data into valuable information for price optimisation. When pricing is done without data-insights, sentiments and disagreements may always pose an issue. Is the price too steep? Are the discounts too high? Without a solid price determination process, such debates are difficult to put to rest.
Within the wholesale industry, tools are needed for choosing the correct discounts, as the prices that customers pay often vary enormously. By using modern technology, smart software with supported algorithms, you determine a price that is in line with the market, you gain insight into the price sensitivity of products, you attract more customers, and you achieve more (gross) margin. On the other hand, you avoid internal disagreements, as your pricing decisions are now justified by your transactional data and company-specific business rules.
of prices are not optimised due to inadequate strategy, policy, and process support.
of wholesale companies fail to deliver the best price.
Adapting to a rapidly evolving wholesale business might seem complicated. Here are the most common pricing challenges wholesale businesses may encounter:
Business owners often struggle with always keeping track of the latest updates on how profitable their products are. Whether due to a weak inventory tracking system, or caused by a lack of proper cost-tracking, failure to acknowledge product profitability in real-time may significantly hinder your growth.
Wholesalers deal with many different customer segments. Each segment means different customers, with varying behaviour patterns. As such, managing the pricing process across a multitude of separate products, with separate audiences, may be difficult to undertake correctly.
Sales prices for wholesalers are mainly net prices (the gross price - specific discount for this target group). Net prices are hard to extract from the market, as they are hidden behind logins.
Pricing is a particularly powerful tool for wholesale businesses, as the pricing environment allows access to a plethora of data and data streams – fantastic for some of the data hungry algorithms in SYMSON. We have the 9 most important built-in pricing strategies, which will allow you to manage all your prices in one system. Moreover, you do not need any deep data, you can already start managing your pricing more efficiently with invoice data or purchase prices per product.
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