Are prices in the B2B sector influenced by the quantity of sales representatives, departments, branches, and products? Many entrepreneurs face difficulties in determining the appropriate price on their sales platform and contemplate how to address this challenge.
This article aims to cover the following topics:
- Contrasting pricing policies in B2B vs B2C commerce;
- Identifying 4 factors that create obstacles in displaying prices in B2B e-commerce;
- Highlighting the importance of digital transformation and the involvement of implementation partners.
Is pricing policy consistent? B2B and B2C sectors in comparison
In the B2C context, a single price is set for a product, applicable to all customers. Making price adjustments becomes convenient as these changes can be effortlessly implemented across all systems. Now guess what happens when you are running a manufacturing company with ten salespeople attending to a thousand customers across different regions. The organizational structure incorporates a variety of pricing policies, and every sales representative adopts their unique strategy, which directly impacts the determination of prices. Through the analysis of financial reports, notable discrepancies in margins, discounts, and other pricing policy factors become apparent.
Price presentation complexities on B2B ecommerce platforms: 4 key factors worth knowing
1. Personalized deals and negotiations
Personalizing prices on an individual basis is a common practice in ecommerce B2B, where factors like order size, customer status, and price negotiations come into play.
Startups stand as an exception, as they possess the opportunity to build business relationships from scratch.
Nevertheless, the majority of our client base consists of established enterprises that have operated in the market for many years, sometimes even decades. They have cultivated specific practices and certain behaviors among their sales representatives and anticipate the implemented sales platform to allow for price customization and the provision of discounts. In the B2B market, clients are accustomed to being offered a tailored, exclusive price, desiring a sense of individualized treatment. Furthermore, there are dynamic variables to consider, including monthly order volumes. It is common for customers to inquire about the potential benefits they can obtain, particularly if they are financially sound and able to make upfront payments.
Due to these factors, it becomes difficult to showcase a single, standardized price on b2b ecommerce platforms.
2. Individual trade terms
B2B e-commerce frequently involves customized trading terms such as framework agreements and long-term contracts. These terms and conditions have a significant impact on the pricing offered to each business customer, creating difficulties in showcasing overall prices on the B2B website.
3. Confidentiality and competition
In some B2B industries, competition is fierce. Revealing prices on the website would grant competitors valuable insights into a company's pricing strategy, enabling them to make adjustments to their own prices accordingly. Entrepreneurs employ features like "Price on Request" or "Log in to View Price" to restrict public access to pricing information, ensuring a competitive edge.
4. Diverse range of offerings
B2B e-commerce offerings encompass a wide range of products and services, each characterized by multiple configuration options, product variations, and tailored specifications. Establishing a uniform price that applies to all possible variations proves to be a challenging task.
Price lists and discounts in B2B sales strategies
Discounts, personalized pricing models, and predetermined rates are customary components of B2B partnerships. Additionally, negotiations are pivotal, with customers actively pursuing avenues to secure lower prices. B2B ecommerce platform cannot rely on a singular fixed retail price to cater to all customer segments in the long run. Instead, prices are flexible and adaptable, aligning with the evolving needs and preferences of organizations that vary in size, collaboration history, and loyalty. As a result, pricing policy becomes significantly more complex.
Are prices your enemy? The impact of digital transformation on price transparency in B2B ecommerce
Lack of defined trade terms in B2B companies often results in inconsistencies between the displayed price and customer expectations, undermining the credibility of the B2B platform. A solution to this challenge involves implementing a comprehensive pricing policy that considers individual terms and conditions, and empowers businesses to engage in price negotiations with their sales representatives.
In today's B2B landscape, traditional methods and tools are insufficient for success. Businesses must undergo digital transformation to keep pace with technological advancements, which have become fundamental to all industries. By partnering with an IT company, potential pitfalls can be avoided, leading to improved project outcomes. The implementation partner brings valuable insights and expertise in technology to facilitate the adoption of the perfect e-commerce solution, customized to fit the specific business needs of the company, with ongoing technical support.
Explore effective strategies for overcoming this and other ecommerce challenges in our free B2B Master Class webinars. Join now to gain ideas, tactics and fresh perspectives that will enhance your ability to successfully navigate B2B projects (e.g. implementing PIM software or ecommerce platforms).