The Manufacturing Pricing Excellence 2023 event in Düsseldorf, Germany, provided a platform for industry leaders to gather and explore the potential of pricing strategies in the manufacturing sector. One of the highlights of the event was the keynote session delivered by Nick Boyer, Senior Director of Strategic Consulting at PROS Inc. With his presentation titled "How Pricing Optimization Suddenly Became More Relevant for Manufacturers," Boyer shed light on the transformative power of neural networks and their impact on pricing strategies. This blog post will delve into the key insights from Boyer's session and highlight PROS thoughts on the event.
The Limitations of Traditional Price Strategies:
Boyer started by acknowledging the longstanding reliance on segmentation in price strategies. While this approach has brought numerous benefits to manufacturers, Boyer emphasized that it may not be suitable for every scenario. Traditional segmentation often overlooks the dynamic nature of pricing and fails to consider various factors that influence pricing decisions.
Enter Neural Networks:
In his presentation, Boyer introduced the concept of neural networks as a game-changer in pricing optimization. Neural networks leverage advanced algorithms and machine learning techniques to uncover deep insights into pricing dynamics. These networks have the ability to analyze and identify the drivers behind prices in unique selling scenarios, taking into account win rate probability, seasonality, trends, and future forecasts. By harnessing the power of neural networks, manufacturers can unlock significant margin improvements.
PROS, a leading provider of profit and revenue optimization solution, shares Boyer's enthusiasm for the potential of neural networks in pricing optimization. The company believes that traditional segmentation-based pricing strategies are becoming increasingly inadequate in today's fast-paced, data-driven manufacturing landscape. PROS emphasizes the need for manufacturers to adapt and embrace innovative technologies like neural networks to stay competitive.
By incorporating neural networks into their pricing processes, manufacturers can gain a comprehensive understanding of their pricing ecosystem. They can identify previously unnoticed patterns, drivers, and correlations that affect pricing decisions. Armed with this valuable insight, manufacturers can make informed pricing choices that drive revenue growth, maximize profitability, and enhance customer satisfaction.
The Manufacturing Pricing Excellence 2023 event provided a platform for industry professionals to explore the power of pricing optimization. PROS keynote speaker, Nick Boyer, shed light on the limitations of traditional segmentation-based pricing strategies and the transformative potential of neural networks. By leveraging advanced algorithms and machine learning, manufacturers can gain deep insights into their pricing dynamics, leading to improved margins and better business outcomes.
PROS encourages manufacturers to embrace the digitalization of pricing and seize the opportunities offered by innovative technologies. With a focus on value-based pricing, recruiting pricing professionals, bridging the gap with sales, and effective internal and customer communication, manufacturers can optimize their pricing strategies and drive success in the evolving manufacturing landscape. The event served as a catalyst for manufacturers to rethink their pricing approaches and leverage cutting-edge solutions to achieve pricing excellence.