- 80% of businesses' profits suffered because price changes are
too slow
- 87% of pricing professionals are worried about their ability to
respond to future volatility
- 63% don't have the ability to model the impact of price
changes
LAS
VEGAS, July 10, 2024 /PRNewswire/ -- Global
research among pricing professionals reveals that 80% of
businesses' profits have suffered because prices couldn't keep pace
with rising costs and changing market conditions.
The study conducted by Flintfox, the intelligent pricing
specialist, found that on average businesses estimated they lost
$478,000 in potential profit as a
result of not being able to change prices fast enough and 87% of
pricing professionals are worried about their ability to respond to
future volatility.
As market conditions continue to be challenging, businesses are
attempting to adopt more sophisticated pricing strategies with
mixed success. Most businesses now employ tailored pricing for
different regions and sales channels to maximise revenue and margin
opportunities, but according to the research, 64% find it
challenging to roll-out their complex channel pricing and 62%
struggle with regional pricing strategies.
In addition to the lag between market changes and pricing
changes, respondents also believe that pricing errors have
negatively impacted margins. Despite widespread digital
transformation, 40% of businesses still rely on spreadsheets for
pricing management to supplement their ERPs, leading to
inaccuracies.
Nearly two thirds of businesses say they lack the ability to
model price changes in advance, so critical pricing decisions are
being made without an understanding of the likely impact.
John Moss, Chief Executive of
Flintfox said: "In the face of ongoing instability driven by demand
fluctuations and cost volatility due to supply chain disruption,
businesses have learnt to adapt their pricing strategies. But the
ability to roll out fast, responsive price changes still eludes too
many organisations.
"Price is a critical decision and is one of the biggest drivers
of profit. Given this Importance and the higher likelihood of
public scrutiny, pricing should be higher up the corporate agenda
and pricing professionals given the tools they need to manage
margins effectively. In challenging times, businesses are
often tempted to pause investment, but the cost of not investing in
pricing technology is far too high."
Research conducted via European Pricing Platform with 195
pricing professionals in Europe
and via The Professional Pricing
Society with 208 pricing professionals in
the US throughout February and March
2024
About Flintfox International
With almost three decades of experience spanning a wide range of
industries across the globe, Flintfox provides businesses with
complex pricing and rebates a smarter way to manage, streamline and
automate pricing.
By consolidating pricing, rebates, settlements, claims,
deductions and more into one automated, accurate and easy-to-use
solution, Flintfox helps businesses protect margins and maximise
revenue.
With a powerful pricing engine and intuitive application,
capable of processing huge data sets at blistering speeds to
supercharge any ERP, Flintfox turns pricing complexity into
opportunity.
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SOURCE Flintfox International