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Manufacturers: Improve Your Pricing Capabilities and Finally Stop Sending Margin Dollars Downstream


On the Pricing Capability Matrix, most B2B manufacturers tend fall into the Level 1 capability category. Customers with more-developed pricing capabilities (distributors, integrators, CMs, OEMs, ODMs, etc.) have been exploiting the situation for years, eagerly scooping-up the margin-dollars being left on the table by manufacturers. Though they may not know exactly how much margin they are leaving on the table or sending downstream, manufacturers are indeed beginning to recognize that their relatively basic pricing capabilities are a problem. However, too many manufacturers see the capability problem as being something that should be addressed incrementally. They are at Level 1 capability, so moving incrementally to Level 2 seems like a logical next step. After that, they will consider moving to Level 3, and so on. Visionary manufacturers, however, will view the Pricing Capability Matrix in the same way they would view a competitive product roadmap --- drawing radically different conclusions in the process. This paper explains this powerful perspective on the Pricing Capability Matrix, exposes the risks associated with an incremental approach, and highlights the new technologies that enable manufactures to make quantum leaps forward in pricing capability to stop sending margin-dollars downstream, once and for all.

Tags : zilliant, manufacturing, pricing capabilities, pricing capability matrix
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Published:  Apr 08, 2010
Length:  5
Type:  White Paper