With globalization reigning over the business world, companies have started expanding their reach internationally. But this market diversification has led to many production and distribution challenges. The cost of selling is not the same across the globe, nor is it the same for different sectors. To tackle these challenges, price books are used.
Price books is a system that allows companies to sell different products to various types of customers. This means that you will have different prices for different continents, countries and sectors. The system is extremely relevant and is used by many leading MNCs. 26% of total businesses consider the competition or the market when setting their prices.
Benefits of having different price books
The reasons that most successful businesses adopt the price books system is that it reaps several benefits. With the right price book management tool, your business can see higher sales, more revenue and in turn, increased production. Here is how price books aid enterprise growth:
1. Higher sales figures
Having different price books for different kinds of customers ensures higher sales figures for the product. This is because the price is set while keeping the consumers’ buying behavior in mind. The number of buyers and sellers vary for the same product in different countries and sectors.
Even the availability of raw material and market competition determines the price. Customers will be happy to pay more for a product that is unique and hard to get in their area. This is why buying behavior of customers differs drastically from place to place.
2. Caters to the perceived value of the product
The perceived value of a product differs from one region to another. The cost of doing business in a country along with the brand awareness determine the apt product pricing for the region. The perceived value of products is also subject to frequent changes. Many eCommerce websites see frequent price fluctuations for their products. Prices of retail giants change every 3 minutes. Having an efficient price book enabled software is therefore crucial if you want to keep up with the latest pricing strategies.
Crust’s Salesforce alternative CRM Suite’s in-built price books feature makes it easy for your sales team to manage and modify pricing across various online stores and websites.
3. Provides flexibility to adjust to legal requirements
Different countries have different taxes, duties and fees for the same products. Some countries also impose a fixed rate or maximum price on certain essential items that companies cannot ignore. Having separate price books helps companies maintain a decent profit margin in countries where the products aren’t imposed with strict duties or expensive taxes.
4. Adjusts to market sectors
Non-profit organizations often depend on subsidized rates to secure raw materials for their products. Having a price books system can help the company give back to society. Having lower price quotations for the education and the public sector also helps fulfil the social responsibility companies have towards the community. It ensures that everyone who needs the product gets it at a price best fit for them.
The best option for managing price books
The open-source CRM Suite built by Crust by default offers the price books feature. Price books is a separate module in the CRM that lets you add, modify and manage different prices for the different types of customers. Get a demo and check it out!