The new capabilities in our MarginMax service enable companies to rapidly evaluate proposed pricing actions based on expected P&L results. They can act faster and with greater confidence.
Austin, TX (PRWEB) October 26, 2011
Zilliant, the leading provider of price optimization solutions, today announced new capabilities that give B2B companies game-changing control of their revenue and margin. For over 10 years, companies have used Zilliant's MarginMax technology to improve bottom-line results by quantifying customers’ price response. With the new MarginMax capabilities, companies can run real-time pricing scenarios that accurately forecast revenue and profits before committing to a strategy.
Providing a level of control and visibility into their business that was previously unimaginable, Zilliant enables customers to confidently react to key business dynamics--from cost changes and competition to fluctuations in demand. With a comprehensive and robust model of their business, users can create pricing scenarios and visualize the projected results to choose the best action plan. Building on Zilliant’s market-leading science, these new capabilities have been tested, proven and validated to accurately predict how customers will respond.
As an example, when rising material costs compelled one manufacturing client to increase pricing by 6%, a rigorous test and control study was conducted to compare MarginMax with their standard way of changing prices:
- For a portion of the business, the manufacturer simply increased prices 6% across-the-board. As usual, the realized price gain was much less, only 4.2%, because so many of the prices were overridden in the field. Even worse, this part of the business saw revenue decline by 4.8% because the increase was too much for many customer segments.
- In the remainder of the business, the ideal price changes were determined in MarginMax by running scenarios to align price changes with customer price sensitivity. By using Zilliant’s Action Response Modeling™, they achieved the target price increase of 6.1% while increasing revenue 8.8%.
"Industrial markets have become incredibly volatile over the past few years. Business leaders need to know that their current pricing tools are too manual and slow to keep up, and thus are partly to blame for missing revenue and profit targets,” said Greg Peters, Chief Executive Officer at Zilliant.
“The new capabilities in our MarginMax service enable companies to rapidly evaluate proposed pricing actions based on expected P&L results. They can act faster and with greater confidence. It’s allowing our customers to meet or beat their numbers consistently--even in the most challenging of market conditions. And because it’s a software-as-a-service offering, deployment is simple and companies are able to be up and running with profitable results in as little as 90 days.”
New MarginMax Modeling Capabilities:
Inform Business Decisions Like Never Before: Through a robust and easy-to-use interface, users specify goals and constraints that account for all key revenue and profit drivers. MarginMax instantaneously reveals the optimal set of price changes that satisfies all the constraints and meets their P&L objectives with minimal risk.
Visualize & Explore Scenarios: The new MarginMax visualizations and user interface are a significant breakthrough. With interactive analytics capabilities built in, users can tune strategies based on market response sensitivity, coming up with the optimal combination of actions to achieve their goals.
A Real-World Model As Dynamic As Business Today: Zilliant’s Action Response Modeling accounts for all of the factors affecting revenue and profit including price sensitivity, cost volatility, competitive response and demand changes. It’s also constantly learning and improving—tuning itself based on how sales and profits change with price over time.
For over a decade, Zilliant has delivered scientifically-proven answers to the toughest question that B2B manufacturers, distributors and service companies face every day --- "What’s the right price to win business at maximum margins?" Zilliant's patented technology has answered this question with scientific accuracy across nearly 1 billion transactions to date. By delivering this valuable pricing guidance directly to the point-of-sale, validated testing of customer deployments has proven average revenue increases of 4.25% and average margin-dollar improvements of 10.18%. These bottom-line results have helped keep this technology one of the most closely-guarded secrets amongst the leading companies in B2B. For more information contact Zilliant at +1-877-893-1085 or visit http://www.zilliant.com.