We’re back from Brussels where Flintfox CEO, John Moss hit the stage at the EPP Global Pricing Forum to demystify pricing technology.
For anyone who couldn’t be there, we’ll be bringing you a special look at John’s session and introducing you to the Pricing Value Chain very soon. Stay tuned.
But for now, we’ve rounded up the key themes of the show. No Belgian Waffle, just the big issues facing pricing pros. Here goes…
Growing applications for AI
Inevitably there’s still a lot of buzz about the role of AI in pricing as more real-world applications emerge. Whether it’s data-based price optimization or using AI to help make decisions about price offers in the form of a support renewal, it feels like we’re just exploring the tip of the iceberg.
Putting a price on sustainability
In much the same way AI is driving change in almost every industry, so too is sustainability. In the context of pricing, there was debate about whether sustainability credentials in themselves increase the value of a product or service. While it might not be appropriate to mark up goods for their ESG scores alone, if the input cost of the goods is higher because of that score, then there’s a strong argument for ensuring pricing reflects that. If not and businesses can’t recoup their investments, there’s a good chance they’ll be deterred from going green in the first place. The key here is having full knowledge of input costs to ensure you’re achieving a fair and sustainable margin, in every sense.
Knowing your net net
This brings me to the final takeaway: visibility. More specifically the need to have full visibility of everything that leads to your net price after all discounts and charges as well as the net net – the final price after rebates.
EPP attendees told us that they don’t always know the full waterfall, from list price to the net or net net price, and as a consequence value is being lost. This lack of visibility is a real challenge but one that’s easily overcome with the right pricing platform in place.
If you’re lacking visibility and need to see your entire pricing waterfall in one place to make accurate and profitable pricing decisions, or you want to know about the potential of AI or how to price to maintain margin in the face of rising environmental investment, let’s start a conversation today.