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Pricing
 Software

    for

Transport &
 Logistics
         Smart Pricing. Higher Profit.
Price is the most powerful profit lever

            Typical P&L                                       Impact on profit of a 1% 

                                                                improvement in…


   Profit        5                                  Price                                  + 20%


  Variable
                                       Variable
                    + 12 %
   Costs        60                                 Costs

                                                   Sales
                   +8%
                                                  Volumes
   Fixed

   Costs        35
                                                   Fixed
                 +7%
                                                   Costs
              Revenue %




            •  Price is the first decision criteria when choosing a transportation service
                     •  Setting the right price for each transaction is challenging



                Smart Pricing. Higher Profit.                                                      2
References




     Smart Pricing. Higher Profit.   3
10 bad pricing practices that cost millions every year

  1.    Sales people cannot easily find the target and floor prices for each deal

  2.    Price is aligned with (or below) competition without consideration of service differentiation and
        customer perceived value

  3.    Quotes are based on the average order/usage of the customer without consideration of its true order/
        usage profile, causing up to 5% error in profitability forecast

  4.    No systematic workflow to enforce pricing policy and to review/approve quotes with pricing
        exceptions or non standard costs

  5.    Negotiated tariff is not correctly implemented in the billing system resulting in customer claims,
        extra work for billing staff and money left on the table

  6.    Customer actual orders/usage are not systematically monitored versus their commitment

  7.    Unprofitable customers are not identified and re-rated

  8.     Customers at risk due to price significantly higher than market price are not identified and no action
        is taken to retain them

  9.    No KPIs and reporting to monitor pricing performance. Sales people do not receive incentives to sell
        at target prices

  10.  No regular data-driven process aimed to tune pricing policy on the basis of updated costs and
       market conditions

                   Smart Pricing. Higher Profit.                                                                  4
Unique On Demand CCRM Technology




 CCRM = Customer Centric Revenue Management

      Smart Pricing. Higher Profit.           4
Pricing Software Maturity Framework

                                                         12-18 months



                           6-12 months
Profit Increase




                                                  Maturity Stage

                  Smart Pricing. Higher Profit.                         12
Optimization : Market Value, Competition




      Smart Pricing. Higher Profit.   13
Office
                      54 avenue Hoche

                      75008 Paris - France 

                      	
             Contact
Thank you!            +33 172 712 510


                      marketing@openpricer.com

                      http://www.twitter.com/openpricer

                      	

                      http://www.linkedin.com/company/openpricer




              www.openpricer.com

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Pricing Software For Transport And Logistics Open Pricer

  • 1. Pricing Software
 for
 Transport & Logistics Smart Pricing. Higher Profit.
  • 2. Price is the most powerful profit lever Typical P&L Impact on profit of a 1% 
 improvement in… Profit 5 Price + 20% Variable
 Variable
 + 12 % Costs 60 Costs Sales
 +8% Volumes Fixed
 Costs 35 Fixed
 +7% Costs Revenue % •  Price is the first decision criteria when choosing a transportation service •  Setting the right price for each transaction is challenging Smart Pricing. Higher Profit. 2
  • 3. References Smart Pricing. Higher Profit. 3
  • 4. 10 bad pricing practices that cost millions every year 1.  Sales people cannot easily find the target and floor prices for each deal 2.  Price is aligned with (or below) competition without consideration of service differentiation and customer perceived value 3.  Quotes are based on the average order/usage of the customer without consideration of its true order/ usage profile, causing up to 5% error in profitability forecast 4.  No systematic workflow to enforce pricing policy and to review/approve quotes with pricing exceptions or non standard costs 5.  Negotiated tariff is not correctly implemented in the billing system resulting in customer claims, extra work for billing staff and money left on the table 6.  Customer actual orders/usage are not systematically monitored versus their commitment 7.  Unprofitable customers are not identified and re-rated 8.  Customers at risk due to price significantly higher than market price are not identified and no action is taken to retain them 9.  No KPIs and reporting to monitor pricing performance. Sales people do not receive incentives to sell at target prices 10.  No regular data-driven process aimed to tune pricing policy on the basis of updated costs and market conditions Smart Pricing. Higher Profit. 4
  • 5. Unique On Demand CCRM Technology CCRM = Customer Centric Revenue Management Smart Pricing. Higher Profit. 4
  • 6. Pricing Software Maturity Framework 12-18 months 6-12 months Profit Increase Maturity Stage Smart Pricing. Higher Profit. 12
  • 7. Optimization : Market Value, Competition Smart Pricing. Higher Profit. 13
  • 8. Office 54 avenue Hoche
 75008 Paris - France 
 Contact Thank you! +33 172 712 510 marketing@openpricer.com http://www.twitter.com/openpricer
 http://www.linkedin.com/company/openpricer www.openpricer.com