It is more important than ever to have an accurate view of your pricing, especially complex pricing transactions. Do you have a revenue management system that can handle complex pricing transactions? If not, you'd have to take orders over the phone and manage all prices in a spreadsheet – or multiple spreadsheets!
The risk of price misalignment is huge, costing significant time and money. But what if you could implement your complex pricing structure into your ecommerce store?
In this blog post, you’ll learn the benefits of trade revenue management and how this can be combined with ecommerce.
We asked the experts, Chris Spence, Regional Director APAC at Flintfox, and Ruben Mink, Chief Sales Officer at Sana Commerce, to share their knowledge.
Regional Director APAC
Chief Sales Officer
What is trade revenue management?
We at Flintfox, a trade revenue management software company, define trade revenue management as all activities relating to maximising profitability and business growth. This includes price management, promotion pricing, and rebate management (vendor/supplier rebates & customer rebates).
What is ERP-integrated ecommerce?
Our partners at Sana define ERP-integrated ecommerce as using your ERP’s existing business logic and data to power your web store. It connects directly with your ERP. A third-party connector is not required, unlike other ecommerce solutions that claim to be integrated.
What are the benefits of having a trade revenue management system in an ecommerce environment?
B2B companies have thousands of discounts and pricing agreements with their customers. Many B2B companies are still managing these discounts and complex pricing structures in spreadsheets, which they upload daily to their ecommerce system.
This way of managing complex pricing becomes an administrative burden for B2B companies and doesn’t allow their pricing online to be real-time or to be easily adapted. An employee still needs to regularly upload new pricing spreadsheets to the ecommerce system.
But B2B companies also have the burden of adjusting their prices when suppliers increase/decrease their manufacturing cost for products. If they don’t increase their prices, then they lose out on margins. And if they’re doing this in a spreadsheet, there’s a lot of room for error.
Other customers who already benefit from trade revenue management, sadly do not leverage this system in their ecommerce environment. Their ecommerce environment requires manual uploads of pricing tables and is not synchronised with their trade revenue management. This leads to discrepancies in prices between sales channels and customer dissatisfaction as the online environment doesn’t provide reliable information in real-time, customer adoption of the online platform can be unsatisfactory as a result.
The #1 problem with managing complex pricing in an
Intense manual labor is a huge issue for B2B companies without an online revenue management system. If a B2B company doesn’t have a system to manage its complex pricing, then that means that it’s likely still managing pricing via spreadsheets.
“Uploading bulky spreadsheets to your ecommerce platform daily becomes an administrative burden for B2B companies. The most common challenge we see for our customers (B2B companies) is the variety of ways they can sell: through their ecommerce platform, through their brick-and-mortar store, sales orders placed in their ERP system etc.
Most of our customers have what is called an omni-channel environment — multiple channels where they can make a sale. The big problem is managing pricing across those channels. Often, they have different pricing databases (or spreadsheets) for their ERP and ecommerce platform, and their store point-of-sale system pulls data from a different database, it’s a nightmare for them. At Flintfox, we help B2B companies to centralise their pricing with a cloud-based pricing engine.”
- Chris Spence, Regional Director APAC
“B2B companies have a lot of complex processes and an abundance of agreements in place. The key challenge for B2B companies is to serve a variety of customers reliably and following the agreements set with these customers. Of course, pricing is a huge topic, because there are many different types of pricing methods and agreements.
These companies have often been operating for 30+ years and are used to operating with complex agreements. But their challenge is dealing with complex pricing online and providing the same level of offline service to their customers in an online environment. Both Sana Commerce and Flintfox are built to accommodate complex pricing. This makes it effortless for B2B customers to maintain their complex pricing structure and their excellent customer service online.”
- Ruben Mink, Chief Sales Officer at Sana Commerce
Flintfox and Sana Commerce: Your best of breed trade revenue management solution
“Combining Flintfox and Sana Commerce enables B2B companies to do business with their customers in the way they’re used to: reliable, with no mistakes or errors, while providing them with the same online experience that they provide offline.”
- Ruben Mink, Chief Sales Officer at Sana Commerce
“The Sana Commerce and Flintfox partnership is a tried, tested and proven solution. We have dozens of mutual customers who now benefit from real-time pricing. By combining these solutions, you have the flexibility to have different pricing on your ecommerce site and offline, or you can align pricing. There’s no longer the fear that you have pricing misalignment. We often see that our customers make the prices on their ecommerce slightly cheaper to encourage online sales. The great thing is that if your suppliers suddenly increase their prices you can adjust yours accordingly within minutes.
The B2B businesses we work with are often impressed that they can do all their trade revenue management without having to use a spreadsheet. On the web store, the discounts are automatically applied if a customer reaches a certain number of products or basket size, and with the help of Sana Commerce, you can also cross sell and upsell with live complex pricing.
Having Flintfox and Sana Commerce gives B2B companies the flexibility and scalability they need to move their business online.”
- Chris Spence, Regional Director APAC at Flintfox
Eliminate the burden of pricing errors and excessive admin time. Get a real-time view of your ecommerce pricing with Flintfox and Sana Commerce for SAP and Microsoft Dynamics 365.
At Flintfox, we have over 30 years of experience in helping businesses master their pricing and rebates. Want to learn more about working with us and our high-performance pricing engine? Feel free to contact us here.