What is Pricing Software?
Pricing software is a tool that helps businesses to create and implement the right pricing strategies for their goods and services to gain a competitive edge. It enables business owners to determine the best optimal pricing for their products by analyzing competition, consumer behavior, market conditions, demand, availability, revenue goals, and so on.
It comprises of multiple features like custom pricing, pricing optimization, profitability analysis, competing product analysis, etc. These features enable businesses to correctly determine the selling price that appeals to the targeted audience and maximize profitability in the long run.
What Does Pricing Software Do?
Pricing software helps enterprises in performing the following tasks such as:
- Study competitor’s data in real time.
- Segmentation analysis for differentiated pricing
- Real time assessments of products, market, consumers, etc
- Competitor’s pricing details on a monthly, weekly, and hourly basis
- Track latest market trends complementing your industry through data analytics.
- Track the effectiveness of their pricing strategies
- Improving their bottom line.
- Track latest market trends complementing your industry with data analytics tools.
Why Use Pricing Software?
There is a plethora of reasons to choose best pricing software for your company including:
- To formulate the best pricing strategies through market analysis.
- To set different pricing points for different products.
- To create custom pricing for different customers and segmented market.
- To create, track, and manage all discounts and rebates from a single platform.
- To create and maintain all price lists for quick recalculation across multiple market segments, product groups, etc.
Who Uses Pricing Software?
Pricing software is most useful for:
- Small Businesses: To develop the most effective pricing points after analyzing market trends.
- Sales Managers: To get deeper insights into their sales and pricing strategies
- SaaS Companies: To create different software subscription software plans
- Marketers: To create different pricing models through analyzing competitors pricing models.
Key Features of Pricing Software
Some key features that every best pricing software includes:
- Pricing Optimization: Easily optimize prices of your goods and services by analyzing market conditions and consumers data for different consumer markets, etc.
- Price Analysis: Enterprises can use data analytics feature to gain deeper insights into the connection between price and its factors such as customer behavior, demand, cost, competition, etc.
- Custom Pricing: Organizations can easily create custom pricing of their products for varying categories of customers depending upon payment terms, contract terms, the customer's worth, etc.
- Competing Product Analysis: Conduct analysis on competitive products to study their unique marketing strategies and outperform competitors by drafting a better plan.
- Profitability Analysis: Businesses can measure profitability of different pricing points they set for their products through analyzing their price optimizing strategies.
- Integration: Price optimization software can be integrated with the existing ERP, Accounting and CRM system to create new pricing strategies.
- Price List Management: Easily update various price lists and quotations in multiple currencies with price list management.
Benefits of Using Pricing Software
There are multiple benefits of using this solution, such as:
- Finding the Ideal Price: The foremost benefit of using this software is that it helps organizations to find the best price for their products and services through studying multiple market factors.
- Create Different Pricing Strategies: This software enables users to create unique pricing strategies that are different from competitors for various goods and services. Developing the right pricing strategies helps organizations to maximize profits and improve their bottom line.
- Easily Monitor Competitor’s Pricing: With the help of AI price monitoring, enterprises can easily analyze competitor’s data in real time. It will help in finding gaps in their pricing and make necessary adjustments for better customer retention and market penetration.
- Better Customer Conversion: Organizations can easily set accurate pricing for their products and services within the software. It helps them to sell their products at the best prices to their customers, increasing acquisition and customer retention rates.
- Improves Your Bottom Line: Pricing optimization software analyzes competitor’s product data and market factors such as product demand and availability. This helps organizations to determine the optimal price of their products. Choosing the right price that appeals to customers helps enterprises to improve their bottom line.
- Manage all Discounts and Rebates: Managers can easily create discounts, offers, cashback and rebate plans for different products for different segments of the consumers.
Different Types of Pricing Software
There are four different types of pricing software for organizations as enumerated below:
- Pricing Analytics Software: This software helps enterprises to analyze their current pricing strategies and find any opportunities to improve their pricing and marketing strategies.
- Price Management Software: Pricing management tool is used to fix and track prices for products, update current product price lists, and create custom pricing for different customers categories and markets.
- Price Optimization Software: Price optimization application uses artificial intelligence techniques to help organizations evaluate price elasticity. It also helps them to speculate the results of different pricing strategies to determine the maximizing profit prices for their products and services.
- Price Execution Software: With the availability of API, it enables users to easily do price calculations and transfer the pricing data in real time to existing ERP system, CPQ, CRM to their e-Commerce site.
Factors to Consider while Choosing Pricing Software
You need to consider the following factors to choose the right pricing optimization software for your organization:
- Price: The price of pricing must be within your budget and should complement your specific marketing and pricing goals.
- Integration: The application you want to purchase must be capable of integrating with existing ERP and CRM systems for easy data transmission.
- Features: Buy pricing solution that has all the features that you need to optimize your product prices and strategies.
- Analytics: It should be able to do analysis and generate reports for measuring price optimizing outcomes.
- Implementation: Software should be easy to implement without many technicalities.
- Security: Security is a foremost concern to choose the right software. Make sure software should be able to keep your data secure and safe from data breaches.
- User-Friendly Interface: The interface of the software should be user-friendly. You should be able to scroll through the app easily.
- Scalability: Software you want to purchase must have the capability to scale itself to match the growing requirements of your business.