{"id":4314,"date":"2023-12-07T16:59:00","date_gmt":"2023-12-07T16:59:00","guid":{"rendered":"https:\/\/flintfoxisv.wpengine.com\/?p=4314"},"modified":"2025-12-02T12:50:18","modified_gmt":"2025-12-02T12:50:18","slug":"value-chain-pricing","status":"publish","type":"post","link":"https:\/\/www.enable.com\/resources\/articles\/value-chain-pricing\/","title":{"rendered":"The Pricing Value Chain"},"content":{"rendered":"\n<p><strong>What is the Pricing Value Chain?<\/strong><\/p>\n\n\n\n<p>The Pricing Value Chain is a framework that breaks down the full lifecycle of how prices are developed, delivered, and managed within a business. It spans four interconnected stages\u2014Strategy, Price Setting, Execution, and Administration\u2014each of which plays a critical role in ensuring pricing is both accurate and profitable. By viewing pricing through this end-to-end lens, businesses can more easily pinpoint bottlenecks, understand where technology supports or limits their goals, and make smarter decisions about where to invest. It turns the complexity of pricing into a structured process, helping organizations align people, systems, and data around a single source of pricing truth.<\/p>\n\n\n\n<p>To help decode it and identify where your needs lie, let\u2019s take a look at each.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Strategy<\/h3>\n\n\n\n<p>The jumping-off point for every business must be a pricing strategy. This is where you decide how to take the attributes of your offering and bundle them together in a way that can be sold to a customer. You\u2019re trying to create enough levers to enable you to charge a price that reflects the value you provide to the customer<\/p>\n\n\n\n<p>While pricing strategy isn\u2019t heavily automated, technology can be an enabler or hindrance. Your tech stack needs to be able to deliver on your strategy so it\u2019s important to know its potential and limitations at this stage and ensure they align.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Price setting<\/h3>\n\n\n\n<p>Price setting is the process of determining the actual price you place on a product or service. Once you have a pricing model, what price do you set? If you\u2019re offering a suite of services how much do you charge? If you have good better best products, what is the base price for good, and what is the increment for the higher-end products? Do you follow a cost-plus strategy, and if so what\u2019s the percentage uplift? Do you follow the competition and match or beat their prices?<\/p>\n\n\n\n<p>On the surface, this seems relatively simple, but in fact, it is very difficult to set a price that will maximize your revenue and, or profits. There are a range of tools depending on the strategy you choose, from price optimization to dynamic pricing software so you need to ensure the tools you\u2019re using are designed for your pricing setting approach.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Execution<\/h3>\n\n\n\n<p>So you have a great pricing model and you\u2019ve invested in research and the tools to get the right price points. How do you ensure everyone from the sales agent to the end customer, gets the right price?<\/p>\n\n\n\n<p>Most businesses have an ERP system with some pricing capabilities and that\u2019s fine for those with simple price structures. However, ERP systems are not sufficient for businesses that have scale and complexity &#8211; more than one channel to market, region, and multiple product or customer attributes.<\/p>\n\n\n\n<p>In those cases, you\u2019ll find that your ERP has major limitations. It could be an inability to get prices out of the ERP into new channels, the ERP doesn\u2019t support the nuances of your pricing model, or it could simply be too slow.<\/p>\n\n\n\n<p>Whenever you hit barriers with your ERP you need to consider a specialist pricing execution solution like Flintfox that can handle complexity. A solution that is both configurable and customizable and can integrate into your ERP seamlessly.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Administration<\/h3>\n\n\n\n<p>The final stage of the Pricing Value Chain is administration and the key focus here is rebates. As the primary driver of profitability for some businesses, it\u2019s critical that rebates are claimed and billed accurately and on time and that businesses have rebate visibility to enable better price-setting decisions.<\/p>\n\n\n\n<p>ERPs tend to have basic rebate functionality, but as soon as you have scale and complexity they fall over, and again, you need a specialized solution like Flintfox.<\/p>\n\n\n\n<p>By examining the Pricing Value Chain, businesses have a far better chance of being able to identify where the challenges and needs lie. To discuss where in the chain you need support, get in touch to talk to one of our pricing experts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One of the biggest challenges our customers face when it comes to enhancing their pricing capabilities is finding the right solution for their needs. <\/p>\n","protected":false},"author":9,"featured_media":4315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"tags":[54],"class_list":["post-4314","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-pricing-strategy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Pricing Value Chain &#8212; Enable<\/title>\n<meta name=\"description\" content=\"By examining the Pricing Value Chain, businesses have a far better chance of being able to identify where the challenges and needs lie.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.enable.com\/resources\/articles\/value-chain-pricing\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Pricing Value Chain &#8212; 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