How To Optimize Customer Pricing For Your Business Intelligent, Optimized Pricing
SPARXiQ continues to enhance our SaaS price optimization software solutions – PriceGPS™ – that combines your understanding of markets with our powerful analytics, to identify the optimal pricing architecture for your business, focusing discounts on the most price-sensitive products and customers, where it will have the biggest payoff in competitive positioning; and extracting small premiums on less-sensitive products and customers.
PriceGPS™ takes the guesswork out of optimized pricing in complex environments, allowing your sales force to focus on serving the customer and driving value. Our process provides for flexibility and discipline in pricing, to create a balance that works in your business.
- PriceGPS™ evolves from Silver PriceGPS™ to our Gold and Platinum levels, to achieve increasing sophistication and impact
- Silver PriceGPS™ builds basic pricing structures driven by quantum customer and product segmentation and product/service sensitivity ratings
- Gold PriceGPS™ increases impact and efficacy with dynamic, micro-segment differentiation
- Platinum PriceGPS™ profiles advanced customer-sensitivity characteristics; incorporates customer behavioral scoring; as well as quantum-level customer Cost-to-Serve analyses
- Basic Architecture
- Data Services: Basic Sensitivity Ratings
- Pricing Structure: Basic Type-Size Values; and Constant Slopes and Premiums
- Good Impact: Estimated 1.0x (2% Gain)
- Intermediate Architecture
- Data Services: Dynamic Sensitivity Ratings (more C/D revenue)
- Pricing Structure: Differential Type-Size Values; & Dynamic Slopes and Premiums
- Better Impact: Estimated 1.5x (3% Gain)
- Advanced Architecture
- Data Services: Dynamic Sensitivity Ratings, Type- & Customer-Specific
- Pricing Structure: Dynamic Type-Size Values & Dynamic Slopes & Premiums; Customer-Specific Sensitivity, Behavioral Scoring & Cost-to-Serve
- Highest Impact: Estimated 2.0x (4% Gain)
What our clients are saying
“I was the biggest non believer of strategic pricing because Zatkoff Company, an $80 million distributor of seals and packing, is primarily an automotive distributor. The automotive business isn’t doing very well and I felt that there was no possible way that we could increase margin. SPARXiQ convinced me to give them a try and it has been nothing but wonderful things after that.
“We dabbled in strategic pricing on our own but never got the results that we needed until we hooked up with SPA. The greatest benefit we have seen is the margin enhancements. We started the SPA program in the summer of 2006. Shortly after that, we suffered very difficult market conditions, however, because of the SPA program, we had our best year ever. Working with SPA has been phenomenal! We now have data that we can analyze that we didn’t have before. People are embracing the new culture, our Freight Department has become a profit center, and we feel like we haven’t even reached the top yet. The process has been great with SPARXiQ! There isn’t a single investment that you can make at your company that will get you the kind of returns that we’ve achieved by working with SPARXiQ.”
“As an Industrial Distributor with a record of fifty-five consecutive profitable years, we thought we knew both how to operate a business and price products. As the SPA Pricing Program was implemented, we moved from being skeptics to believers as we saw a 2% overall gain in gross margin before the first year, and after three years margin growth continues!”
“The SPARXiQ Program is the highest impact most bottom line-enhancing program I have seen in my entire 35-year career! The increased margin has give us the opportunity to reinvest in the growth of our business.”