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P R I C I N G B R E W R E S E A R C H R E P O R T
Seven Myths and Outdated Beliefs That Are Causing
Companies to Fall Further and Further Behind
MYTHVSREALITY
Pricing Technology
Pricing effectively in B2B has never
been easy. But today, increases in
pricing transparency, information
access, and global competition are
conspiring to make a difficult task
even more challenging.
For many companies, memories of
the last downturn are all too clear.
And as a result, most are focused on
driving efficiency and productivity
to maintain financial health.
In this situation, pricing technology
would seem to be the right solution
at exactly the right time.
After all, pricing has more leverage
on profitability than sales volume
or operating costs. And technology
has long been a proven source of
efficiency and productivity gains.
So the combination seems ideal.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
Pricing Effectively
in B2B Is Becoming
More Challenging
47% 53%
YES NO
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
The potential of pricing technology
is clearly being recognized by many
B2B companies. In the last decade,
adoption and utilization of pricing
technology has grown significantly
in response to increasingly difficult
market conditions.
In a recent PricingBrew study, a full
47% of the B2B companies surveyed
indicated that they were currently
using pricing technology to:
Model and analyze pricing data
Segment and optimize prices
Manage quotes and contracts
In the same study, the companies
who utilize pricing technology also
reported experiencing less pricing
pressure than those who do not.
While this certainly bodes well for
the users, what about the others?
Pricing Technology
Utilization In B2B
Has Been Growing
Does Your Company Use Pricing Technology?
At PricingBrew, we interact with
tens of thousands of B2B companies
across a variety of industries.
We conduct practitioner surveys
and interviews to uncover and
report on the most effective B2B
pricing practices and capabilities.
And we’ve made it our business to
stay up-to-date on the latest trends
and developments in the pricing
technology landscape.
Given the benefits that the pricing
technology users report, we wanted
to understand more about those
that aren’t using it:
Why aren’t these companies
using pricing technology?
What are the factors that have
been holding them back?
What do the technology users
know that others may not?
47% 53%
YES NO
Does Your Company Use Pricing Technology?
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
So Why Are These
Companies Sitting
on the Sidelines?
Surprisingly, the common causes
of inaction we’ve identified aren’t
based on current organizational,
technical, or financial realities.
The pace of technological change
and development over the last 3-5
years has made it very difficult to
keep up and stay current.
As a result, many of the non-users
are simply misinformed about key
aspects of the pricing technology
landscape as it exists today.
In effect, these companies are being
held back by perspectives and views
that may have been accurate just a
few years ago, but have since been
nullified by technological evolution
and advancement.
Seven of these pricing technology
myths and misconceptions are very
common...and costly.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
Many Companies
Hold Outdated and
Inaccurate Views
Some companies believe that only
the largest companies can benefit
from pricing technology and that
their company is simply too small
to warrant it.
Because they could afford to fund
the initial R&D, multibillion dollar
companies were indeed the driving
forces behind the development of
the first major pricing solutions.
However, the efficacy of pricing
technology is less about scale and
more about complexity. And large
companies certainly don’t have an
exclusive on having to price lots of
products to lots of customers.
Our research shows that while the
larger companies still represent the
bulk of the pricing technology user-
base, utilization amongst smaller
companies is growing quickly.
It’s Only for Giant
Companies...We’re
Too Small for It
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
PRICING TECHNOLOGY MYTH #1:
35%
33%
17% 15%
$5+ Billion $1-$5 Billion $500M-$1B $250M-$500M
Pricing Tech Users:
Size of Business
Some companies are under the
impression that their industry is so
unique that there’s no way pricing
technology could help.
They see companies in different
industries reaping the benefits of
pricing technology. Rather than
being encouraged and motivated,
they simply say, “Yeah...but our
industry is different.”
But no industry is immune from the
problems that pricing technology is
designed to address. And no sector
operates without buyers and prices.
Our research confirms that the use
of pricing technology isn’t limited
to a handful of industries. We see
adoption and utilization across 14
different B2B verticals---from
high-tech and building products to
education and agriculture.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
It’s Only for Certain
Industries...And Our
Space Is Different
PRICING TECHNOLOGY MYTH #2:
We’ve also found that companies
have a limiting belief that pricing
technology is only for certain
business models.
Manufacturers will conclude that
because they sell through channels
and are removed from the ultimate
customer that pricing technology
would be of little use to them.
But here again, wherever there is a
buyer being offered a price, pricing
technology can help improve and
optimize those interactions.
While distributors and retailers
were indeed the primary users of
pricing technology in the past, our
research shows growing utilization
amongst manufacturers.
These manufacturers are clearly
tired of sending their margin
dollars downstream.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies © Copyright MindBrew • May not be used or reproduced without permission.
It’s for Retail and
Disties...But We’re
a Manufacturer
PRICING TECHNOLOGY MYTH #3:
11%
52%
37%
Services Manufacturing Distribution & Retail
Pricing Tech Users:
Type of Business
When many companies explored
pricing technology years ago, they
discovered massive, on-premises
software “suites” that required 18-
24 months to install and integrate.
Not having the stomach for that
sort of disruption, many simply
said, “No thanks.” And thinking
nothing has changed, many have
stayed away ever since.
Today, on-premises software suites
are largely a thing of the past and
all of the major pricing technology
vendors have made the switch to
software-as-a-service (SaaS).
Built for rapid deployment and
painless integration with existing
systems, today’s SaaS solutions can
be up-and-running and generating
results in just a matter of weeks.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
Implementation Is
Too Disruptive and
Time-Consuming
PRICING TECHNOLOGY MYTH #4:
Holding some companies back is
the belief that if they implemented
pricing technology, they’d need to
hire a lot more pricing people just
to manage the new systems.
This is a perplexing misconception
as technology can improve speed
and efficiency and often reduces,
rather than increases, the need for
additional headcount.
Recognizing how technology can
enable human resources to “scale”
themselves, companies with very
small pricing teams are leveraging
pricing technology to accomplish
what even the largest pricing teams
can’t hope to accomplish manually.
According to our research, nearly a
third of the companies making use
of pricing technology have no more
than five pricing people.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
We’d Need a Large
Pricing Department
Just to Manage It
PRICING TECHNOLOGY MYTH #5:
31%
23%
21%
25%
1 to 5 6 to 10 11 to 25 26 or More
Pricing Tech Users:
Size of Pricing Team
Even just a few years ago, pricing
technology required a multimillion
dollar investment. So it’s not too
surprising that many companies
still believe this to be the case.
And while pricing technologies can
be expected to generate significant
ROI, returns are irrelevant when
you simply do not have the money
to invest in the first place.
Today, however, the investment
picture looks very different.
As vendors have moved to SaaS
delivery, they’ve also embraced
subscription pricing to reduce the
upfront investment and align the
ongoing costs to the benefits.
The most sophisticated pricing
technologies are now within reach
for the cash-strapped companies
that need them most.
It’s So Expensive...
There’s No Way We
Could Afford It
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
PRICING TECHNOLOGY MYTH #6:
Amongst the companies not using
pricing technology today, there is a
shocking lack of urgency.
To their way of thinking, it doesn’t
matter when they get started and
they can hold off until they have no
other choice but to act.
The problem, however, is that there
is an experience curve with pricing
technology---i.e. the longer you use
it, the more effective you become.
And those who are currently using
pricing technology (many of whom
are likely to be competitors) are not
standing still, waiting for others.
As our research shows that nearly
60% of current pricing technology
users plan to take it even further,
the capability gap between the
“have’s” and the “have not’s” can
only get wider.
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
We’ve Still Got
Plenty of Time to
Get Caught Up
PRICING TECHNOLOGY MYTH #7:
As companies tend to be secretive
about their pricing, it’s easy to miss
the fact that pricing technology is
becoming much more ubiquitous
and mainstream in B2B.
Companies large and small, across a
broad range of industries, are using
pricing technology to improve their
performance and gain advantage.
For others, however, inaccurate
views and outdated beliefs about
pricing technology are keeping
them on the sidelines and causing
them to fall further and further
behind in the capabilities race.
Don’t let myths and misconceptions
hold you back. In just the last few
years, the technology landscape has
changed dramatically.
So even if you’ve looked before, it’s
time to look again.
THINK
AGAIN
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
Myths Are Costly...
the Reality Is Much
More Profitable
To further the advancement of best practices and innovation
across the global business community, free distribution of this
research report has been generously underwritten by:
SOURCES: PricingBrew PricingPulse and SellingBrew SalesPulse Studies
© Copyright MindBrew • May not be used or reproduced without permission.
A range of B2B topics from
segmentation and analytics
to value-based pricing and
pricing technology.
A variety of resources from
case studies and research
briefings to step-by-step
tutorials and video guides.
Exclusive monthly webinars
on topics suggested by our
community of subscribers.
Expert interviews with top
consultants and real-world
pricing practitioners who’ve
“been there, done that”.
Training courses covering
value-based pricing, sales
team adoption, and strategic
pricing processes.
© Copyright MindBrew LLC May not be used or reproduced without permission.
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Best Practices for
Better B2B Pricing
Pricing Technology Myth vs. Reality
Pricing effectively in B2B has never been easy. But today, increases in pricing transparency, information access, and global competition are conspiring to make a difficult task even more challenging. For many companies, memories of the last downturn are all too clear. And as a result, most are focused on driving efficiency and productivity to maintain financial health. In this situation, pricing technology would seem to be the right solution at exactly the right time.
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