Adhere to A Disciplined Pricing Process for Business Longevity with NetSuite

Summary: This write-up talks about the pricing process, its importance in terms of business benefits, outcomes, longevity, and how NetSuite can help a business strategize the pricing process to scale up and take a competitive lead.

Pricing Process stands for:

• Series of steps a business takes to figure out the charge to be levied on its products and/or services.
• Process is both an art and a scientific method

In some cases, each product or SKU comes with its pricing process. However, in other cases, pricing is considered at the portfolio level. These may cover separate products which are bundled together at one price.

Growing and thriving business organizations often find it tedious to keep pace with their increasing diversity of customers and the numbers circumventing their expanding operations. Meanwhile, large or big-sized businesses operate at a scale where humans aren’t there to retain all the relevant data in their head.

Here, software comes into the picture and the best for making pricing decisions is NetSuite ERP. For the most part, it manages real-time data from all parts of the business in a single, centralized, and unified database.

NetSuite ERP’s modular design means that the system can easily expand and scale as the business’s needs increase.

Businesses that reliably set effective prices make their customers happy and drive profitable outcomes as well.

One of the key steps in the pricing process is

1. Determining the primary pricing objective.
2. Helps steer the business’s strategy and price-setting going forward.

Common examples covering the most common focuses of companies going through the pricing process are :

Keeping nonprofit companies aside, we understand that financial gain is one of the primary objectives among businesses —if not the default. It covers devising a pricing strategy that builds in a decent profit margin, often defined by the business’s industry.

Business companies going into short-term profit maximization mode often make shortsighted business decisions that create a lot of money upfront. However, it readily impacts customer loyalty and invites competition. Here, business administrators must be clear about their time horizons and risks while looking for profit-maximizing pricing strategies.

Business company’s main objective is to stay in business. These companies refrain from trying to expand or squeeze extra margin out of their customers. Rather, they struggle with tough times—whether due to a disruption in their business model, a worldwide pandemic (COVID-19), or a short-term emergency, such as cash flow issues. For the most part, any of these reasons could necessitate an immediate pricing strategy pivot. Although survival mode looks a little different depending on the threat, businesses need to align their pricing strategy with their most immediate and urgent requirements, while working to ensure a more successful and scalable future.

Usually, a sales goal is to multiply sales, but a sales-oriented pricing strategy also seeks to change a company’s sales pattern in other purposeful ways. For instance, when a business organization launches a new sales channel —like selling through a new partner, introducing a mobile application, or opening a new store — it may initially want to capture more business through the new option.

If you choose market share as an objective, it is like selecting sales but with a more straightforward end in sight. However, this isn’t always compatible with profit-optimizing, as the most successful way to attract new customers is to offer great promotions and deals that keep their interest intact. But plenty of business organizations see market share as the best and an inventive path to success and longevity.

Some business companies use their pricing strategies to help consolidate a particular image. For instance, producers or makers of luxury goods or products typically choose to keep their prices high. Additionally, they would rather have inventory go unsold than sell at a discount. This is because they are afraid of doing so as it may erode their long-term brand image. By the same token, some business companies do everything they can to keep the prices of certain items low so that they are known as customer-friendly and reliable marketers.

At inoday, an official, globally accredited, and #1 ORACLE NetSuite Channel Partner, businesses can make the most of a proven methodology, industry standard-based practices, and 16+ years of experience in driving Digital Transformation via Cloud Computing Solutions. You can connect to our NetSuite Consultants and turn your business to make higher profits without much hassle. Our experts can help you choosing the best Pricing Process, increase market share, and extend business longevity.

For more details, write to us at info@inoday.com Or Schedule A Demo