There are a variety of omni-channel pricing strategies these days. As consumers and businesses adapt to change there needs to be a solid technology solution that can deliver accurate and instant pricing to each sales channel.
That’s easier said than done, as most complex ERPs like SAP, Oracle and Microsoft Dynamics, would likely have to swallow a host of modifications in order to handle the complexity of many businesses today. Where things become complex is around how to manage this pricing in one central location that can instantly feed a price to any requesting application.
Omni-channel pricing – What to do?
The ‘combination’ approach is one that respects the omni-channel price as a starting point then overlays any exceptions that may be related to a type of promotion that’s relevant only for one channel. Conversely there could be upcharges like delivery for eCommerce purchases you would not pay for when bought in store.
Channel specific pricing can be a sensible approach on paper, however, managing pricing for many channels without a team of pricing analysts is going to be an uphill battle - not to mention the risk of unhappy customers. One unhappy customer tells on average 26 others!
This image illustrates how a centralised pricing engine can supply calculated prices in real time to any sales channel. A pricing engine takes a price request from any application, anywhere, based on any sales channel. The customer, product, and quantity ordered is then reviewed and the resulting price is instantly sent.
Omni-Channel pricing – The secrets on how to do it successfully
Know your pricing strategy: Be clear on what your pricing strategy is and stick to it. Ensure you have the resources to manage and administer the pricing to each sales channel.
Use software to manage your pricing effectively: Promotions, discounts and upcharges all managed by clever software is going to save you time and money, and also give you the competitive edge you need these days to get the sale.
Calculate your prices when you need them, don’t store them all in tables! The volume of calculated prices a business needs to run can easily be in the millions. Why would you store them in tables, having to upload and download them daily just to keep them accurate?
Centralise the management of your pricing – using software and trade agreements to store the rules. A single source of pricing truth is what any omni-channel business needs. Not to mention the vast reduction on price maintenance and simplification.
Business has got complicated, consumers want the best price, or the right incentive to make the sale happen. Suppliers and retailers are under margin pressure like never before, so the ability to see your margin whilst setting pricing levels becomes a critical factor. A pricing engine gives you margin visibility inclusive of all discounts and incentives.
Don’t be stuck without the tools you need to make a sale and get a new customer. Centralise your pricing with Flintfox RMx and get the competitive edge you need in your omni-channel environment.