Your company relies on its sound decision making, so you should be investing in the tools that help you with this across the board. In that regard, Epicor offers an Enterprise Resource Planning (ERP) platform that is packed with tools.
Among these is the company’s strategic pricing feature.
This will help your company in a number of ways when you learn to use and master it. Let’s find out how.
What is the Strategic Pricing Feature?
You really have firepower when you have access to an ERP, particularly one like Epicor and its strategic pricing feature.
The strategic pricing feature uses data to help you set prices that beat out your competition while still earning a profit and meeting your customer’s needs. It is a strong suit of Epicor and one that you should implement at every turn.
The Benefits of Strategic Pricing
When you use strategic pricing, it won’t take long to begin realizing the rewards. Here are a few reasons that people use this feature:
1. You Will Better Address Your Customer’s Needs
Don’t think of strategic pricing as a tool to hit arbitrary numbers, think of it as a tool to better serve your customer base.
You’ll help your customers save money by providing them with options they didn’t originally have. It consistently keeps you honest and sensitive to your customer’s needs, which helps you further understand your customers as a whole.
Using Epicor’s strategic pricing automation makes your company more productive as well because you are meeting your customer’s needs while allocating fewer resources. This productivity boost improves your company’s ability to serve your customers and focus on its strengths.
2. It Maximizes Your Profit Margins
Epicor’s strategic pricing takes a scientific approach to your data so that, in the end, you come away with bigger profits.
You’re leaving money on the table whenever your prices don’t reflect the reality of the market or the needs of your customers. When your prices are always competitive, you’re better able to win over a larger portion of the market, which grows your customer base for the long-term.
3. This Approach Builds Discipline and Helps You Study the Market
Strategic pricing always keeps you honest, because you’ll have to confront the reality of the software’s suggestions. As such, you are getting daily doses of data that also keep you in touch with the market.
This builds your discipline and instincts and hones the sharpness of your business as a whole.
Incorporating Strategic Pricing
Now that you know the advantages, here’s how you can incorporate strategic pricing:
1. Understand the Main Pricing Strategies
There’s no one-size-fits-all approach to strategic pricing. Instead, you will need to learn the different philosophies and techniques that you can put to use.
Some of these pricing strategies include keystone pricing, Manufacturer Suggested Retail Price (MSRP), skim, follow, and penetrate. Understanding each strategy takes some time and experience.
Once you have a feel for what they mean and how they work, you can apply them in a manner that is applicable to each situation.
2. Get a Handle on Your Shipping Charges
When you use Epicor’s strategic pricing feature, the software will point you toward areas of change that give you more flexibility. In many situations, this ends up being your shipping charges.
You can play around with shipping costs and test your data routinely without it having too much of an effect on your company’s workflow and profit margins. What’s more, these changes can also bring you big results when you figure out a strategy that works.
3. Frequently Check Epicor’s Automated Recommendations
It’s not enough to simply have access to this feature. You need to use Epicor’s pricing recommendations as a strategic foundation.
Check the automated recommendations on a daily basis so that you can get a feel for your company’s variables and what Epicor is picking up from them. This will help to build your decision-making muscles and will help you speak more articulately about every facet of your company during reports and negotiations.
4. Modify Your Visual Settings in a Way That You’re Comfortable
The main benefit of Epicor is that it is a highly intuitive graphical interface. You can modify your settings so that all your information is presented to you in a way that you are better able to digest.
Make Epicor’s strategic pricing feature your own by choosing the settings that are the most useful to you, and keep fine-tuning your system every step of the way.
5. Incorporate Qualitative Checks and Balances
Because even profit margins can be misleading, you should add checks and balances to Epicor’s analytics.
No matter what, use Epicor’s suggestions as a starting point for the decisions that you make. The more references you get, the more you will be able to discern between which data points are meaningful, and which just appear meaningful.
From there, you can set up a hierarchy that plays into helping you change the prices on your terms.
Make Use of Epicor’s Strategic Pricing
When you have access to Epicor’s ERP, you are better able to make business decisions that count. With strategic pricing, you will get up to the moment data that can help you get an edge on your competition, whether you specialize in eCommerce, retail or any other form of sales.
Take this time to absorb these points and don’t hesitate to try out Epicor and all of its features.
To get a feel for why Epicor’s strategic pricing provides exactly what you need, contact us to learn more.