Our experience and research shows that High Tech companies may either lose margins due to under-pricing or lose business due to over-pricing. More often than not, products not only compete with competitor products but also get cannibalized by new or improved products of their own company. This, coupled with increasing commoditization in the market, puts extreme pressure on the prices, with potentially adverse implications on profitability. Therefore, overcoming the following challenges is the key to an effective pricing strategy:
- Absence of a single data source and analytics: Competitive information and historical sales or deals data are usually not available from and in a single information repository. This denies organizations an opportunity to learn from the pricing and profitability trends and leverage competitive information to their benefit. This results in lost opportunities and erosion in margin.
- Lack of workflow-based systems: When you have multiple decision-makers, the absence of a systemic workflow leads to a loss of traceability, consistency and efficiency in the pricing process, leading to delays in responding to customer requests and inaccuracies in proposal responses.
- Lack of forecasting and scenario planning capabilities: Price leakage is inevitable when there is an inability to manage multiple inter-dependent decision variables to arrive at a sound pricing decision.
What TCS Provides
Using our price management project execution methodology and mature analytical experience (Gartner Magic Quadrant for BI 2008, 2007: TCS assessed as “Leader”), we design, develop and implement custom-built and product-based solutions. Addressing the entire price management lifecycle through price determination, optimization and execution and enforcement, our solutions transform your isolated, ad-hoc pricing processes into a seamless, institutionalized yet transparent system ensuring consistency of pricing processes and policies.
TCS’ Price Management offering includes Consulting services and Design, Development and Implementation of custom-built and product-based solutions. With TCS, you get the advantage, not only of a world-class price management framework and a ready pool of price experts, but also of its full services offering portfolio, mature delivery infrastructure, the SOLAR architecture framework (SOA Platform) and the Global Network Delivery Model (GNDM™) that speeds time to value and reduces cost and risk.
Price management has the following benefits:
- Improved deal win-loss ratio
- Enhanced profitability and revenue
- Increased transparency and accountability
- Faster pricing decisions
- Consistent pricing policies
- Empowered field staff
- Reduced TCO