The 2024 B2B Manufacturer's Pricing Report

Link to the Full Document: B2B Manufacturer’s Pricing Research Report 2024

Amidst a tense macroeconomic climate fraught with volatility, 65% of business leaders now report feeling more pressure to deliver effective pricing strategies than they did two years ago and 60% of B2B manufacturers report margin significant margin leakage. The result is manufacturers are becoming increasingly aware of the importance of pricing and revenue management.

As many as 97% of discrete manufacturers in B2B and B2B2C verticals found that their pricing strategies had an influence on their ability to meet their revenue targets, with 53% reporting it has a major influence. In fact, when it comes to their efforts to increase sales, the only aspect pricing leaders in these organizations are more focused on than pricing strategies is product development. That’s because pricing has an outsized impact on the long-term health of a business.

When manufacturers devise pricing and revenue strategies, most of them are doing so to grow revenue (60%), achieve financial stability (57%) or grow profit margins (57%). The problem is, so far, only 34% of businesses describe these efforts as being extremely successful. Indeed, as many as 61% of manufacturers report there is room for improvement. The key to unlocking those improvements is Technology.

Today’s volatile business landscape demands a focused, data-driven approach to pricing. Are your pricing strategies maximizing revenue and aligning with your business objectives? Our B2B Manufacturer’s Pricing Research Report highlights key insights into how leading B2B and B2B2C discrete manufacturers are navigating the intricacies of pricing and revenue management.

This research surveyed 200 senior pricing decision-makers across North America, Europe, and the Middle East, all responsible for driving pricing strategies within their organizations. The findings offer a compelling narrative on current pricing practices, revenue management challenges, and the need for leveraging external expertise for optimizing pricing.

Key Findings from the research include:

1) Need for a Robust Pricing Strategy: 65% of decision makers admitted to increased pressure for delivering efficient pricing strategies compared to two years ago.

2)Well-defined Pricing Strategy plays a key role in meeting Revenue Targets: 97% of pricing decision makers voted for revenue management strategies to be a major catalyst for increased profit margins and financial stability of the organization.

3)Excel is the go to tool for planning pricing decisions: 44% of pricing decision makers still rely heavily on Excel as an instrument for revenue management.

4)Using AI to transform pricing landscape: Though devoid of a clear roadmap, 89% of pricing leaders wish to leverage AI for building pricing strategies. ?

5)Lack of customized pricing options for customer segments and product lines: 52% of businesses admitted their inefficiency of measuring cost to serve varied customer segments and discrete product lines.

6)Rampant discounts and selling short: 60% of enterprises attribute discount overuse or giving in to competitor pricing for failing to meet revenue growth.

In the light of the above challenges faced by pricing leaders, 7Sages Pricing’s B2B ?Manufacturer’s Pricing Report gives a descriptive analysis of current pricing approach adopted by B2B manufacturers, the challenges of establishing competitive pricing strategy and ?the tools deployed for drafting pricing strategies, thereby, making a compelling case for devising value-based pricing strategies for improving profit margins and revenue management.

To access your complete copy of our B2B Manufacturer’s Pricing Report, click on the Link at the start of this article.

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