Changing the rules of B2B Pricing
How artificial intelligence can substantially increase profit
Pricing has the power to rapidly increase or decrease margins. However, for many executives today, pricing remains a paradox. There is often uncertainty about how to set the correct price proactively based on the customers’ willingness to pay (WTP). Furthermore, the vast amount of accessible data, the enormous range of analytical possibilities, and increased purchasing power make the decision increasingly more complex. It is therefore important to highlight what it takes to enable AI-assisted pricing and what pricing options exist.
In this White Paper, Porsche Consulting presents seven challenges in pricing and shows how AI can successfully help to overcome these. It provides pragmatic guidance on how to elevate pricing along three main building blocks from the overall pricing strategy and setting the right prices through to sustaining them – for top decision makers as well as for operational staff. In addition, case studies illustrate the achieved business benefits and demonstrate the cross-transfer potential of the methodology.
- The boundaries between B2C and B2B are already hazy and are likely to disappear in the years to come; this will inevitably influence pricing organizations
- Markets are transforming and new global price pressure and competition put tremendous pressure on traditional B2B pricing organizations
- There is a vast potential for technological advancements in pricing through artificial intelligence (AI)
- B2B pricing must now alter beyond traditional limits to safe long-term profit, revenue, and market share
- Porsche Consulting proposes three building blocks to master these challenges, benefit from the opportunities, and achieve pricing excellence