Top Uses of RealPricer

How will you use RealPricer? We have compiled our customers' Top Uses of RealPricer and described them below. Click on a Use # to view more.

Vendor Level Review

Isolate your stocking lines that need pricing strategy review.

Challenge

You want to quickly identify the stocking vendor lines whose sell pricing strategy should be reviewed based on how they are performing against the market.

Action

Vendor Level Review

RealPricer Review
You use the Manufacturers Report1 to zero in on stocking vendors whose total average pricing is notably higher or lower than the marketplace. Using the Variance and Fastest Mover reports2 to view the individual line items from different perspectives to see if all items show the plus or minus variances or is it some combination of both; do the variances appear to occur randomly, or by product type for example.

Checking the Item Details3 for each of your own price averages will reveal the individual transactions that resulted in your average price over time. The RealPricer trend line Chart4 will give you a bird's eye view of how you and the marketplace have been pricing items over a period of time.

Conclusion

RealPricer Exported Data Plus Other Factors
When the different data variables are reviewed in RealPricer, then output to your own spreadsheet via the Export function, you can then bring in any additional variables from your own system and make the decision to modify or not modify the pricing for individual items or lines.

Below Market Pricing

Are you leaving sales revenue on the table?

Challenge

RealPricer Exported Data Plus Other Factors
You are analyzing stock items that have not performed as you projected. The cost plus a percentage pricing you used has not resulted in meeting the revenue goals you set, even though unit sales have been good.

Action

Below Market Pricing

RealPricer Research
You jump into RealPricer and open the Items Less than RealPrice (%) report1, and start isolating by each line. There they are, items whose average sell price is notably below the market average. You then switch the view to the Less than RealPrice ($) report2, where you see how much potential sales revenue for per item has been left on the table, based on the difference in average sell price between yours and the marketplace times the number of units sold.

Conclusion

Leveraging RealPricer Results
You export3 the results of this report to a spreadsheet, isolate those lines/items where you think there is room to move the price up without losing sales based on the marketplace average, come up with the total revenue from this strategy that will put your organization back on track to achieving its goals. You then meet with your sales people to show them what needs to be done and where to focus their exports.

Pricing sanity check - customer

Your customers are telling you the truth.

Challenge

Pricing sanity check - customer

You have developed a quote for a customer in response to an RFQ that he has submitted, or your sales person has delivered a quote to him. The customer, or your sales rep, comes back to you with an item that either says is priced out of line with the marketplace, nearly 10% higher than what he's seen. So your sales person automatically concludes that your price needs to be dropped 10% to get the sale.

Action

Verify With RealPricer
Knowing that customers can sometimes "exaggerate" their response to a quote, you look up the item in RealPricer in the All Items module1, and find that your average price variance is only 2% above that of the market average2. You tell your sales rep he can offer an additional 5% off to get the business instead of 10%, saving 5% sales margin in the situation. You start thinking about how many other similar situations occur each week.

Conclusion

RealPricer Helps Sales Confidence
Going forward, you mandate RealPricer verifcation of customer high price claims as SOP for your sales people before price concessions can be made. Your sales people have more confidence handling customer price complaints knowing there is an objective tool for evaluating them.

Pricing sanity check - vendor

Your vendor reps are giving you correct stock costs – right?

Challenge

Pricing sanity check - vendor

Your customer, responds to a quote stating that an item is priced out of line with the marketplace. Your sales rep says you need to knock the price down 15% to get the sale.

Action

Verify With RealPricer
You look up the item in RealPricer in the All Items module1, and this time the RealPricer search result indicates that the customer or sales rep was in fact accurate in their feedback—the variance between your average price and the marketplace is 15% over2, not logical for this line. You contact your local vendor rep to confirm your stock cost. He confirms what he shows, but says he'll contact corporate to confirm. He calls back, apologizes and says that apparently there was a special price in affect for this item that corporate hadn't told him about.

Conclusion

Preventative Action With RealPricer
You make a mental note to have your pricing analyst regularly review variance reports in RealPricer and consult with purchasing about stock costs for any items whose prices look suspiciously high compared to the marketplace average.

Non-stock item look up

No more dialing for non-stock specified

Challenge

Non-stock item look up

Your quotations person receives a "gotta have a quote now" bill of materials from a customer. Some of the items on the list are from non-stock lines and will have to be sourced.

Action

Source It In RealPricer
The traditional reaction of a quoter is to pick up the phone and start calling other distributors who may carry the item, wait for their turn around, and "sweat" the time. But instead he turns to RealPricer. Entering the catalog number under the Search tab in the All Items module1, he finds the item with a marketplace average sell price.2 He adjusts the price using his price modifier, completes the quote and emails it back before the customer can even call to ask him "where's my quote?".

Conclusion

RealPricer Integration
Not only did RealPricer help the quoter be responsive to a customer's urgent request, he was able to quote a price for the non-stock item that was accurate for the market, and when it comes time to actually buy the item to fulfill the order, his purchasing agent can use that price to negotiate a better cost price.