{"id":59460,"date":"2023-01-10T08:49:35","date_gmt":"2023-01-10T15:49:35","guid":{"rendered":"https:\/\/www.vendavo.com\/?p=59460"},"modified":"2024-05-25T16:54:59","modified_gmt":"2024-05-25T22:54:59","slug":"vendavo-identifies-significant-regression-in-enterprice-price-maturity","status":"publish","type":"post","link":"https:\/\/www.vendavo.com\/news-releases\/vendavo-identifies-significant-regression-in-enterprice-price-maturity\/","title":{"rendered":"Vendavo Identifies Significant Regression in Enterprise Price Maturity"},"content":{"rendered":"\n<p>DENVER,&nbsp;Jan. 10, 2023&nbsp;&#8211; Vendavo, the global market leader in B2B <a href=\"https:\/\/www.vendavo.com\/all\/what-is-price-management\/\">price management<\/a> and commercial excellence solutions, today revealed organizations have regressed in their pricing maturity over the last four years. <a href=\"https:\/\/www.pricingplatform.com\/?view=article&amp;id=1042&amp;catid=33\" target=\"_blank\" rel=\"noreferrer noopener\">The&nbsp;4<sup>th<\/sup>&nbsp;Global Pricing Maturity Study, conducted by EPP<\/a>, found 41 percent of organizations price their products and services in a basic, level one pricing structure &#8211; 25 percent more than companies that did so in 2019.<\/p>\n\n\n\n<p>Level one pricing describes organizations that attempt to sell any product to anyone at any price and their primary pricing action is to maintain a price list. To capture full value for products and services, level three pricing is an important threshold for maximizing an organization&#8217;s profitability. It includes value-based pricing which relies on segmented customer groups&#8217; willingness to pay before deciding price.<\/p>\n\n\n\n<p>Implementing pricing improvement&nbsp;<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3751690-1&amp;h=933294066&amp;u=https%3A%2F%2Fwww.mckinsey.com%2F%7E%2Fmedia%2Fmckinsey%2Fbusiness%2520functions%2Fmarketing%2520and%2520sales%2Four%2520insights%2Febook%2520the%2520hidden%2520power%2520of%2520pricing%2520how%2520b2b%2520companies%2520can%2520unlock%2520profit%2Fthe-hidden-power-of-pricing.pdf&amp;a=delivers\" rel=\"noreferrer noopener\" target=\"_blank\">delivers<\/a>&nbsp;greater organizational profitability according to McKinsey &amp; Company &#8211; a 1% price improvement results in an 8.7% increase in operating profit. &#8220;In our changing economic landscape initiated by a global health pandemic and exacerbated by massive supply chain breakdowns, persistent inflation, and war, manufacturers and distributors face serious challenges to their bottom lines,&#8221; says&nbsp;Mitch Lee, Profit Evangelist, Vendavo. &#8220;Strategic pricing improves profitability despite these troubling macroeconomic events, yet they failed to put the power of price to work for them.&#8221;<\/p>\n\n\n\n<p>Other findings from the study include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Cost-plus pricing<\/strong>, or the addition of a single percentage mark-up, is the basis for price setting for most (68%). Implementing value-based pricing is the goal for 90%.<\/li>\n\n\n\n<li>Understanding\u00a0<a href=\"https:\/\/www.vendavo.com\/all\/willingness-to-pay\/\">customer willingness to pay<\/a>\u00a0is based only on internal judgment for over half (57%).<\/li>\n\n\n\n<li>Nearly one-third do not have a&nbsp;<strong>professional pricing team.&nbsp;<\/strong>Instead, they rely on sales, marketing, or finance to set prices. Nearly all respondents (90%) know they need one.<\/li>\n\n\n\n<li>Most organizations today continue to rely on&nbsp;<strong>Excel spreadsheets<\/strong>&nbsp;rather than professional pricing software (87%). Most have the goal to implement it however (85%).<\/li>\n<\/ul>\n\n\n\n<p>&#8220;We view the average decline in pricing maturity as good news because more organizations have stepped in &#8211; conscious of the importance of investing in pricing capabilities and all ambitious for change,&#8221; says Pol Vanaerde, President, EPP.<\/p>\n\n\n\n<p>For insights into how manufacturers can make improvements in their price maturity and contribute to the bottom line in 2023, download the full report&nbsp;<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3751690-1&amp;h=3075980125&amp;u=https%3A%2F%2Fwww.vendavo.com%2Fepp-pricing-maturity-ebook-2022%2F&amp;a=here\" rel=\"noreferrer noopener\" target=\"_blank\">here<\/a>.<\/p>\n\n\n\n<p><strong>About Vendavo<\/strong>&nbsp;<\/p>\n\n\n\n<p>Vendavo&nbsp;empowers global manufacturers and distributors to accelerate growth, profitability, and&nbsp;revenue with leading pricing, selling, and rebate management solutions. Enterprises like Ford,&nbsp;Emerson, Medtronic, GAF, and&nbsp;AmerisourceBergen rely on&nbsp;Vendavo&nbsp;to manage, optimize, and&nbsp;digitize their end-to-end commercial processes.&nbsp;Vendavo&#8217;s&nbsp;SaaS solutions, team of pricing and&nbsp;selling experts, and proven, repeatable process accelerates value and outcomes that are not only&nbsp;predictable, but unrivaled. With&nbsp;Vendavo, the world&#8217;s most ambitious B2B organizations can develop&nbsp;dynamic customer insights and execute optimal pricing strategies that maximize margin, boost sales&nbsp;effectiveness, and improve the customer experience.<\/p>\n\n\n\n<p>Vendavo&nbsp;is headquartered in&nbsp;Denver, with offices in&nbsp;Czech Republic,&nbsp;India, and Sweden.&nbsp;For more&nbsp;information,&nbsp;please visit&nbsp;<a href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=3751690-1&amp;h=1483580733&amp;u=https%3A%2F%2Fwww.vendavo.com%2F&amp;a=https%3A%2F%2Fwww.vendavo.com\" rel=\"noreferrer noopener\" target=\"_blank\">https:\/\/www.vendavo.com<\/a><\/p>\n\n\n\n<p><strong>Contact<\/strong><\/p>\n\n\n\n<p>Morgan Short<br>Director of Content and Web Strategy<br>press@wordpress-1234677-4410313.cloudwaysapps.com<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 4th Global Pricing Maturity Survey from Vendavo &#038; EPP finds more organizations today are trying to sell any product to anyone, at any price<\/p>\n","protected":false},"author":24,"featured_media":59461,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1237],"tags":[1249],"class_list":["post-59460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-releases","tag-price-optimization"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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