2025 Pricing Considerations Identified in New Research from Vendavo and Experis Pricing Solutions

DENVER - Nov. 13, 2024 - PRLog -- Manufacturers and distributors are optimistic about better economic conditions in 2025 and are planning accordingly, says new research released by Vendavo, the global leader in B2B pricing, selling, and rebate management solutions and Experis Pricing Solutions. In the 2025 Pricing for Profitable Growth Outlook, C-suite members identify top pricing considerations in 2024's sluggish economy, what they know about buyers today, and how they will price their products in 2025.

Nearly half of all responding US and European manufacturers and distributors (46%) say they are cautiously optimistic about 2025 and are preparing their pricing models for better economic times. One–fourth (26%) go further and say they feel bold and have already implemented new products/services and pricing models.

"Organizations are focused on boosting profits, and margin improvement strategies are essential today," said Eric Carrasquilla, CEO, Vendavo. "Finding and offering the right product at the right price at the right time to the right customer is table stakes for successful commercial operations. Every other growth initiative will deliver little value without the right price."

Insights into how market pressures influence buyers are foundational to offering the right price. In 2025, leaders anticipate buyers' willingness to pay (WTP) thresholds - or the maximum amount of money they are willing to spend on a product or service – will prioritize customer experience (34%), product support options (32%), and sustainability (30%).

C-Suite pricing considerations, anticipated shifts in 2025, and the resources required for effective price optimization are outlined in the report, including:

• How inflation influences pricing strategies. Before adjusting their prices to inflation, manufacturing leaders first consider revenue goals (45%). Distribution leaders are most concerned with maintaining margin (38%) and meeting customer demand (37%). Both manufacturers and distributors report their top price optimization strategy is the value-based approach (28%), followed by the market-based approach (25%).
• Pricing automation grows while AI use stalls. Automation and AI offer pricing advancements, but AI adoption remains challenging. C-suites understand software is required for successful pricing initiatives. Approximately half (49% - 53%) report fully integrated instances for setting prices, formulating guidance, and providing product suggestions and context to the sales team. To assist with price management, just 29% report using AI to streamline operations, increase efficiency, and boost profitability. Those that use AI say it's for pricing process improvement (50%) more so than pricing intelligence (28%).
• The need for a strong pricing function. Market pressures require agile pricing models. For timely execution, respondents recognize the importance of robust and proactive pricing teams. More than half (52%) of respondents (all with 500+ employees) say 11-20 people are working on pricing, and 95% say they will recruit more in 2025.

"Companies who focus on proactive pricing strategies to incorporate value-based approaches, leverage technology, and prioritize customer engagement will pull ahead in a market where costs are rapidly fluctuating," said Maureen Roderick, Director of Delivery, Experis Pricing Solutions. "The critical aspect of a pricing journey is the ability to align pricing strategies with both market realities and customer expectations, ensuring long-term success and adaptability in an ever-changing landscape."

The 2025 Pricing for Profitable Growth Outlook, conducted in September, questioned manufacturers (67%) and distributors (33%) from the US and Europe. Respondents are senior-level sales (64%), finance (30%), pricing (3%), and marketing (2%) professionals who have sole pricing decision-making responsibility.

Download the 2025 Pricing for Profitable Growth Outlook here.

About Vendavo

Vendavo empowers global manufacturers and distributors to accelerate growth and profitability with leading pricing, selling, and rebate management solutions. Companies like Emerson, Medtronic, and GAF rely on Vendavo to manage, optimize, and digitize their end-to-end commercial processes. Vendavo's solutions, a team of pricing and selling experts, and proven process accelerates value and outcomes that are not only predictable but unrivaled.​

About Experis Pricing Solutions

Experis Pricing Solutions has delivered more than 100 successful pricing implementations and offers enhancements, support & maintenance, data transformation (ETL), and sustainment models that lead customers to self-sufficiency.

With 20+ years of experience, Experis Pricing Solutions helps companies make profitable commercial decisions faster – and more accurately – by implementing and maintaining world-class pricing and revenue management software solutions.