You’d think that with all the research and effort on pricing and price optimization, that everyone would be really good with pricing. But Propel recently conducted a survey and found we’re not that good after all. What was surprising is that there’s still a dearth of best practices with pricing and NPI (New Product Introduction), and that’s causing some major financial and legal risk.
According to our research, over 80% of companies experience delays, pricing and configuration errors, and ad hoc approvals. These are just a few of the findings you can see on this infographic called “The Cost of Poor Pricing.”
There are lots of examples where companies made errors rolling out pricing, and that caused them millions of dollars in lost revenue. Zappos, Apple, Best Buy are just a few examples. In fact, there are organizations out there actively trying to find these arbitrage opportunities. However, you can be completely accurate with your price updates, but if you take too long, even a few weeks of delay can cost hundreds of thousands of dollars!
So whether you’re rolling out a new product, a new feature, offering a promotion or just making a seasonal adjustment, you have to be careful how you roll out updates to price books, product attributes and CPQ (Configure Price Quote) rules.
Here are some key findings from the survey :
- A vast majority of companies have sub-optimal processes for updating products and prices: While survey respondents rated their processes 3.05 out of 5 stars, only half of them adhered to corporate or regulatory standards. Even worse, almost 90% of companies faced errors and delays in the update process.
- Manual tools are inhibiting effective processes: 34% of survey respondents are using spreadsheets or email to manage changes to products and pricing. Salesforce Data Loader, a tool to upload spreadsheet data into Salesforce, was used by 26% of respondents.
- Surprisingly, only a handful of people are tasked to manage thousands of products: 55% of respondents used 5 people or less to manage an average of 1,688 products and 32 price books in Salesforce. 45% of respondents updated their products and price books at least once a month.
Want to see more? Check out the infographic summary, “The Cost of Poor Pricing.” Or find out more about Propel’s change management capabilities for Salesforce pricebooks, products and CPQ at TrackMyPricebook.com.