Optimally price every opportunity with PriceGPS™
Companies with complex pricing environments struggle to maintain optimal margins on daily transactions where a wide variety of products is sold to a wide range of customers. Without data-driven guidance on where to quote each specific customer and opportunity, salespeople can’t be expected to price correctly and often compromise margin by underpricing.
PriceGPS™ from SPARXiQ helps distributors and manufacturers maximize margins through strategic pricing recommendations. SPARXiQ combines your understanding of markets with proven analytics deliver the optimal pricing architecture for your business, one that provides both discipline and flexibility.
Take the guesswork out of your complex pricing environment and allow your sales force to focus on serving the customer and delivering value through strategic pricing.
Competitive Where it Counts
Focus discounts on the most price-sensitive products and customers to successfully compete in the market
Margin Where it Matters
Capture margin opportunity by extracting small premiums on less-sensitive products and customers
By analyzing invoice data, compensation statistics, customer buying, ordering and spending patterns, PriceGPS™ delivers key predictors of price sensitivity and optimum pricing levels by product and customer.
Companies know their customers well. That’s why SPARXiQ works closely with clients to capture valuable market insights that inform customer and market sensitivity ratings. No two companies have the same relationships with the same customers, so no two companies should rate customer sensitivity the same way.
When you combine your market insights with the analytics we find based on your transaction data, you can benefit from a full, accurate picture of customer sensitivity.
Determining true product sensitivity requires evaluating much more than volume and velocity. Many companies factor velocity heavily into pricing, but the surprising fact is that there is less than a 10% correlation between inventory velocity and true marketplace sensitivity.
PriceGPS™ rates product sensitivity based on a proprietary combination of twelve key attributes to provide the most granular and accurate segmentation possible. The result? You are able to discover incremental margin improvement where you didn’t know it was possible.
PriceGPS™ is available in three tiers, offering increasing impact at each level.
Gain an estimated 200 basis points through fundamental type-size values and basic sensitivity ratings.
Upgrade to increase to a 300 basis point improvement through differential type-size values and dynamic sensitivity ratings.
Maximize results at a 400 basis point level by adding dynamic type-size values and customer-specific sensitivity.
What Clients are Saying
“I was the biggest non believer of strategic pricing because Zatkoff Company, an $80 million distributor of seals and packing, is primarily an automotive distributor. The automotive business isn’t doing very well and I felt that there was no possible way that we could increase margin. SPARXiQ convinced me to give them a try and it has been nothing but wonderful things after that.
“We dabbled in strategic pricing on our own but never got the results that we needed until we hooked up with SPARXiQ. The greatest benefit we have seen is the margin enhancements. We started the SPA program in the summer of 2006. Shortly after that, we suffered very difficult market conditions, however, because of the SPA program, we had our best year ever. Working with SPARXiQ has been phenomenal! We now have data that we can analyze that we didn’t have before. People are embracing the new culture, our Freight Department has become a profit center, and we feel like we haven’t even reached the top yet. The process has been great with SPARXiQ! There isn’t a single investment that you can make at your company that will get you the kind of returns that we’ve achieved by working with SPARXiQ.”
“As an Industrial Distributor with a record of fifty-five consecutive profitable years, we thought we knew both how to operate a business and price products. As the SPARXiQ pricing program was implemented, we moved from being skeptics to believers as we saw a 2% overall gain in gross margin before the first year, and after three years margin growth continues!”
Want to learn more?
Download the PriceGPS™ technical brochure for more information.