Many people put a lot of thought into the pricing of their products. They also tend to spend an inordinate amount of time managing pricing changes. Once your standard pricing has been established, ERP can automate pricing based on promotions, volume, and even customer specific pricing. We’ll explore how each of these options can be put in place today to help maximize the pricing functionality you already have available in ERP.
Promotional Pricing
If you offer or sell to clients that offer seasonal or promotional pricing, it’s likely that those price changes are getting made manually in your system. This can take days to complete, then the process repeats to get back to normal pricing. With your ERP system, you can schedule the promotion and enter the effective date and percentage off. This would take 5 minutes to update instead of days, and 5 minutes to reverse. Promotional pricing, whether planned a year in advance or done at a moment’s notice, is very straightforward when you use the tools already available in your ERP system.
Volume Discounts
Everyone loves a discount and many customers expect it when they order a high quantity of your products. Knowing whether or not a specific product qualifies for a volume discount can sometimes make or break a sale. ERP can help you to manage the pricing of products by volume so that the pricing is easily visible. When your sales or customer service team looks up the item in inventory, they can view all the price breaks that have been established on that product with the click of a button. If they are entering a sales order, the correct price is automatically calculated when the quantity is entered. This eliminates the guess work, calculators and costly mistakes that often come with a manual process.
Customer Specific Pricing
There are many different groups that you may consider your customers. You may sell to distributors and manufacturers but also offer direct sales through an ecommerce site. Surely the distributor would not get the same price as the end customer. ERP gives you the much needed flexibility to define a price that is specific to each customer group. The pricing is visible through the inventory or sales order module and is automatically calculated once the ERP knows the customer name.
Pricing is key to the success of your business and ERP can help you to maintain consistency in your pricing strategy. Whether you offer promotions, volume discounts or just need to group your customers in specific pricing segments, ERP can support your pricing model.
Utilize the tools already at your disposal to automate and simplify the pricing process. If you already use MAS 90 or MAS 200 and need help, we are just a phone call away. If you don’t use MAS 90 or 200, but would like to explore the benefits of a robust ERP system, we’d love to talk with you.