why you need a new pricing model
In our last piece we looked at different ways you can improve your pricing by classifying and categorizing tickets. Today we investigate why existing pricing models leave potential revenue on the table. Creating and implementing pricing models can be difficult. Ticketing systems often only provide one field to define categories. The lack of pricing features force businesses to create complex ticket naming schemes, which can lead to future confusion when trying to change prices or adding new products.
where’s the problem?
Businesses that never review and update their pricing model tend to have large and complex product catalogs. This is because instead of properly pricing a product they just create a new one. With only one field to name or classify you can soon end up with thousands if not millions of similarly named products. To make it worse, some of these products only existed for short term sales and others probably never even sold.
Businesses can also be hindered by complex operational processes both within their organizations and their ticketing system or ERP. When the time comes to make a change, the actual work can be overwhelming. Having strategic, operational or tactical processes to regularly review and change prices makes this easier. It’s no surprise that the lack of process leads to constant reinforcement that price-changing is bad or even dangerous. By not making data driven decisions and not reviewing prices regularly, the idea of changing prices becomes a daunting task.
how to move forward
To make it easier to overcome the organizational, strategic and operational hurdles, businesses should look at implementing a structured and data driven pricing process. Defining the process allows you to find the business problems your organization needs to solve and to improve your operational pricing efficiency. You can find more information on pricing processes in our white paper. You can also look for pricing tools that help you craft a pricing strategy that meets your specific goals, which is where th!nkpricing can help you.
Our mission is to revolutionize how modern businesses think about pricing. Our services, both educational and software, are built on data and experience gathered from successful custom pricing projects. And, we think it’s important that the lessons we’ve learned be shared with you! So, on top of sharing our expert pricing knowledge, we are building tools for you to put this knowledge into practice.
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