Approaches to the discipline of setting prices, or “pricing,” vary across industries and across different companies within the same industry. Aspects such as degree of competitiveness and constraints such as capacity— think air travel or hotels—are a major determinant of how companies go about pricing. But with the rise of both the digital economy and the amount of relevant data being generated and stored, pricing as a discipline is now possible across a broad range of industries and companies. Nonetheless, it is still not mainstream and is often not a major focus within the organization on a continuing basis.

Pricing determines not just revenue, but also margin. And margin is vital to ensuring profitability. So pricing both serves to generate volume, and hence revenue. Given the importance of pricing, it is surprising how few companies use data and purpose-built technology to optimize pricing for volume, margin or the right mixture of both. Ventana Research’s Office of Finance research shows that only 23% of organizations have adopted technology for this task, and only 34% and 30% measure customer and product profitability, respectively, using similar analytic techniques.

So why don’t more companies adopt such techniques to help analyze, understand and deploy optimized pricing to reach revenue and profitability targets? One reason is the perception that such an exercise is overly complex and unlikely to generate returns that justify the effort.

One vendor, Pricefx has decided to tackle this perception of difficulty by launching a fast-track process that reduces the time to value.

Watch this on-demand webinar to learn more.