price managementIt’s the story of every successful company. You have a great product, your customers are loyal, and your sales are at an all-time high. On the outside, things seem to be moving forward and, in some cases, at alarming speeds. It’s as if your company has taken on another identity, one of a self-driving machine. But what happens when the gears move too fast and pieces begin to break? This autonomous vehicle now becomes unmanageable and you begin to lose control. Everything that should be a major asset to your organization is now starting to take you down a different road, one with bumpier roads and signs with fading colors.

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To get back on track begins with analyzing your pre-existing business while prospecting future opportunities. Here’s how a price management tool is a turn in the right direction for those who have lost track of their revenue-focused GPS.

Pricing speed and accuracy

Every fast-paced organization has multiple moving parts, and sometimes decisions are made without the other pieces being aware of them. To ensure that everything runs smoothly, your business must have clear communication. Due to competitive price changes in the market, you need to consider how pricing changes influence the direction that your sales are going to follow and how it will affect the functions of your entire team.

Capturing more revenue begins with understanding where you’re currently standing and where you want to go. Can you afford to discount a product, or will you have to increase prices to remain driving down a clear road? How will your organization plan to make up for any shortcomings? With a price management tool, pricing changes are communicated in real time, creating faster visibility for everyone on your team so you know the next turn to take.

Driving profits

For every business, the ultimate goal is to drive profits. And although it may seem like a simple and well-lit path, often there are hidden obstacles in the road. Implementing a price management tool may just be the light for those whose current operations are clouded. A modern business with multiple accounts should be aware of the diversity among them, providing each with personal attention to progress towards their goals. By harnessing the power of analytics, companies get a live look specific to each account’s performance making it easier to manage their profitability throughout various distribution channels, SKUs, and brands, ultimately allowing them to boost their margins within their target range.

Following state laws and roadmaps

As other metrics return to their default operations, one factor that many distributors must also grease is their compliance with individual state laws. A lack of understanding the complexity behind each state’s requirements may be what’s holding your organization back from moving forward. Individual state tax regulations vary, with some dependent on the flat rate on specific volumes of the product while others only tax the initial price paid by the customer. For example, in Florida, the liquor tax on wine is on the pricier side, with a total tax of $2.25 per gallon. However, in Massachusetts, the liquor tax on wine is just $0.55 per gallon. With a price management tool, your pricing benchmark can be easily managed, making sure you are in line with pricing requirements specific to each state.

What’s next

Don’t drive your company with your eyes closed. By utilizing the power of a price management tool, you can feel confident knowing that the next turn you take is guided by concrete numbers.

Want to learn more? Visit our website for more information.

Kayla Chiara