In a scenario where manufacturers don't have the expertise to design a profitable, market-driven pricing strategy, they normally set static prices and adjust them on an ad hoc basis or customer case specific.
As a result, discounts set at the beginning of the year remain static, which leads to customers waiting for those exceptions, eventually causing order spikes and cash flow issues for the manufacturer. Without a strong pricing strategy, manufacturers end up providing monthly or quarterly discounts, which again teaches customers to wait for bargains before ordering. “Ultimately, companies end up leaving profits on the table because they lack the pricing strategy,” says Brian Cumming, president, and CEO of BCA Technologies.
The Florida-based BCA Technologies developed eRep CPQ Plus; a cloud application that gives sales channels the ability to take control in configuring, pricing, quoting, and ordering products and services through a defined pricing strategy. eRep delivers pricing optimization in collaboration with Pricing Cloud, a company known for enabling its customers to understand, predict and shape demand so they can make better decisions that will impact sales, profits, volume and loyalty.
Hosted on Microsoft Azure, the eRep solution integrates Pricing Cloud’s modeling and forecasting that analyzes the company’s historical data to deliver optimized pricing. This ensures that the right price is given to the right customer at the right time, increasing the sales margin for the manufacturer. With costs dramatically shifting, eRep makes the price adjustment procedure programmatic, and dynamic. eRep will give manufacturers the ability to move from cost-plus pricing to market-based dynamic pricing models which maintains margins and increase profits.
Many of BCA Technologies’ manufacturing clients leverage channel partners to sell and quote their products on a list price times discount structure. The manufacturer’s partners are constantly asking for special discounts as they negotiate their quotes in a competitive market. eRep enabled one of BCA Technologies’ clients to move from ad hoc discounting to programmatic, rules-based discounting guaranteeing margins are aligned with the manufacturer’s growth strategy. After the client implemented eRep CPQ+, the sales managers had more confidence that their list pricing and default discounts were based on real data and not any hit-and-miss static pricing list that they came up with at the beginning of the year. The result was the manufacturer meeting its profit target.
eRep CPQ is a comprehensive solution with a customized pricing optimization feature that's tailored for each company's unique market and products
As BCA Technologies expands its client base and offerings over the next five years, the company is focused on building a partner network that provide added value for their customers. As new data and AI technologies continue to develop; the company treads on an eternal path of innovation with new offerings and new eRep features. With the eRep platform now successfully deployed across 24 countries, BCA Technologies aims to expand into a diverse set of industries.