Difficulties with b2b pricing and how to overcome them

Aug 17, 2023 | Ecommerce, JustSell B2B

B2B pricing set against different customers

B2B prices can pose several challenges for businesses. Here are some advantage and disadvantages of B2B Ecommerce: 

  1. Complex Pricing Structures: B2B pricing often involves intricate structures based on factors such as quantity, B2B discounts, contract terms, and customer segments. The complexity of pricing structures can make it challenging to communicate and manage prices effectively. To overcome this, businesses should simplify their pricing structures by offering tiered pricing based on volume or implementing standardized pricing models that are easy to understand and communicate. 
  2.  Price Negotiations: Did you know Roughly 85% of respondents believe their pricing decisions could improve.B2B transactions often involve negotiations between buyers and sellers. Price negotiations can be time-consuming and may result in pricing inconsistencies or lower margins. To address this challenge, businesses can establish clear pricing guidelines and discount frameworks. Training sales teams on effective negotiation strategies and using data-driven insights to set optimal pricing levels can also help streamline the negotiation process. 
  3.  Competitive Pricing Pressure: B2B markets can be highly competitive, and businesses may face pressure to lower prices to win customers or retain existing ones. However, lowering prices without considering the impact on profitability can erode margins. To overcome this challenge, businesses should focus on differentiating their offerings through value-added services, product customisation, or unique features that justify premium pricing. Conducting thorough market research and competitor analysis can help identify competitive pricing strategies that maintain profitability. 
  4.  Price Management and Consistency: Do you know B2B businesses expect to raise prices by an average of 6.6% in 2023. In B2B environments with multiple sales channels, regions, or customer segments, maintaining consistent pricing can be challenging. Inconsistent pricing can lead to customer dissatisfaction, confusion, and erode trust. To address this, businesses can implement centralized pricing systems and utilise pricing management software that ensures consistent pricing across channels. Regularly reviewing and updating pricing guidelines, providing training to sales teams, and establishing clear pricing approval processes can also help maintain consistency. 
  5.  Value-Based Pricing: Determining the optimal price point that aligns with the value delivered to customers can be complex. B2B buyers often seek transparent pricing that reflects the value they will receive. To overcome this challenge, businesses should focus on value-based pricing approaches. Conducting thorough market research, understanding customer needs and pain points, and communicating the value proposition effectively can help businesses justify their pricing and demonstrate the benefits customers will gain from their products or services. 
  6.  Continuous Pricing Optimisation: B2B pricing is not a one-time decision. It requires ongoing monitoring, analysis, and adjustment to remain competitive and maximise profitability. Businesses should leverage pricing analytics and data-driven insights to identify pricing opportunities, optimise price levels, and align them with customer expectations. Regularly reviewing market dynamics, monitoring competitor pricing, and conducting customer feedback surveys can further assist in fine-tuning pricing strategies. 

By addressing these difficulties with strategic pricing approaches such as b2b process optimisation and management software, businesses can navigate the complexities of B2B pricing and drive profitability and growth. 

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