"Buying Power" is one of the top five factors that influences consumer behaviour. The product or service may be of the highest quality, but if the price is not financially suitable for the customer’s economic situation, it may lead them to pass on the purchase.
In addition, consumer needs are always changing, however one of the main constraints is the goal to save as much as possible. Small variations in price can directly affect the "Buying Power" factor and consequently increase or decrease the profitability of companies between twenty to fifty percent.
This situation therefore requires action by both the entrepreneur and the employee, to ensure that the sales price is decided strategically, acting directly on the consumer’s behavior as well as bringing profitability for the company.
Trade Revenue Management (TRM) is the process responsible for administrating resources relevant to the revenue related activity of any organisation, including complex pricing, rebate management and trade promotions pricing. All these activities must be strategically analysed in order to generate revenue for the company.
When taking into consideration the complexity of customer requirements and best management practices, companies need to efficiently manage promotions to be able to generate a greater impact on financial results.
These reasons are enough to understand why Trade Revenue Management is becoming a key requirement for many companies and a topic of hot discussion.
However, it’s not enough just to have knowledge in the relevant areas and to master all theories in order to manage Trade Revenue Management efficiently, it’s also essential that the most modern tools are used to optimise the process. Companies invest a lot of money in business promotions, but they face many challenges in analysing the process from start to finish, as well as evaluating the profitability of prices and promotions.
Do you really believe that Excel spreadsheets will be able to manage all this complexity of information in an effective and timely manner?
There is an increasing trend for companies to invest in upgraded solutions and technologies to optimise processes and automate the generation of information and analysis of results.
In a nutshell, we're talking about using technology to optimise business processes when it comes to price management and promotions pricing. Solutions are required to create a coordinated strategy that eliminates inefficient calculations and investments and maximises the positive impact on business.
The Flintfox RMx - Pricing & Promotion Execution solution is the most modern and advanced technology in terms of Trade Revenue Management, presenting features that solve pricing problems when developing complex trade promotions. RMx is built using next generation technology, with in-resident memory to deliver hyper-speed pricing, and Microservices to make maintenance easier and much faster. It is hosted in Microsoft Azure and it can be interfaced to any ERP system.
When executed well, Trade Revenue Management delivers many competitive advantages and brings numerous benefits to the organisation including:
With the RMx solution, the best price can be achieved to give back the “Buying Power” to the customer. At the same time, the business is able to manage the profit margin of the calculated price and apply discounts quickly and efficiently, by having automated reports generated in real time to help make the best decision.