As B2B companies take products to market, several factors contribute to a buyer’s choice: brand awareness, purchase method, perceived value, promotions, and price; but more often it’s the price of the item that gets the most attention. Building effective pricing strategies for products and services is essential to boost sales and profitability. Highlighting the challenges in margin improvement, Mitchell D Lee, Profit Evangelist at Vendavo says, “Having a pricing strategy is one thing - deploying it successfully is another.” Segmentation-based pricing can have a dramatic impact on the bottom line and can be a significant contributor to upscale the profitability. However, it often becomes difficult to execute a pricing strategy when there are large numbers of products, and they are distributed across multiple channels to market. This is where Vendavo can help.

Based in Denver, Colorado, Vendavo uses AI technology deployed in enterprise-capable solutions to generate powerful customer insights for optimal pricing. This contextual information assists organizations in maximizing profit, boosting sales effectiveness, and improving customer experience. Lee mentions that while B2C businesses have a tremendous amount of transactional data, the nature of B2B businesses requires different and specialized approaches. With over 20 years of experience in B2B pricing for chemicals, distribution, high-tech and industrial manufacturing, the company provides cutting-edge solutions with deep industry expertise to provide clients with best practices in commercial processes. “We have the right tools and solutions to assist our clients in setting the right price, on the right product, to the right customer, no matter when or where they are buying.”

The company offers intelligent pricing solutions that assist clients in unlocking new profit areas and accelerating revenues. The capabilities offered — segmentation, price optimization, profit and price analytics, as well as price administration— provide dynamic price guidance to its clients and enable them to maximize margins with each transaction. Adding to this, the company offers intelligent sales solutions for correctly configuring products, components, and services into customer-specific packages. Vendavo CPQ Cloud, a comprehensive SaaS solution, provides guidance for sellers, allowing rapid product configuration, pricing, quotation generation. The sales team sees improved quote accuracy and cycle time allowing them more time to focus on productive sales activities.
Over the years, Vendavo has played a bigrole in assisting its many clients to improve profitability. In one instance, the firm helped a global automotive manufacturer improve its demanding pricing process. The manufacturer had issues with updating and maintaining pricing on thousands of products on a daily basis. Previously performed manually, delays and errors were very costly. “With our help, they were able to pay for the project in the first 6 hours of use. That’s a staggering benefit as we helped them improve their commercial processes.”

Vendavo helps our clients be more profitable – pairing deep industry expertise with improved pricing and commercial process excellence

Seeking to offer more ways to improve profitability for its customers, Vendavo has been adding greater breadth of capabilities in the opportunity-to-order space. In 2017, the firm acquired Endeavor CPQ because of their highly respected configuration and quoting capabilities. In 2018, the firm acquired Navetti to expand its presence in the European market. The company was known for operationalizing the pricing process and providing global and regional price targets efficiently and effectively. With Vendavo PricePoint, customers can deploy in two hours, apply industry best practices in two weeks, and achieve full system integration in two months. Lee explains, “Our goal has always been to help our clients be more profitable-pairing deep industry expertise with improved pricing and commercial process excellence.”