STOCKHOLM, May 24, 2017 /PRNewswire/ --
Globalized companies all share one serious problem: profit loss due to cross-border trading. But these losses no longer need to be inevitable. Navetti, a global leader in systems and solutions for optimized and operational pricing, has found a way to mitigate and manage trading risk, ensuring their clients avoid losing any of their profit.
Historically, prices have varied between markets due to local differences in aspects such as customer demand, level of competition and the general cost of doing business. If these price differences become too large there is a risk of secondary trade, i.e. when distributors and customers buy products at a lower cost in their own market and resell them at profit in another market where the price level is higher. This means that the producer is basically competing against themselves, which reduces profits. It can also have other negative effects, such as reducing customer loyalty and weakening the brand. Collectively, this is called trading risk.
While more and more companies are turning to advanced pricing solutions to help them manage the complexities of international markets, two particular parallel forces are driving change in how sellers manage their pricing strategies: Technology and Globalization. Businesses around the world are becoming increasingly familiar with the financial effects of these variables on basic risk management, and are on a constant lookout for a way to reduce the impact these factors have on their bottom line. Information and communications technologies increase the transparency between sales channels, markets and regions. Customer business operations are getting more and more consolidated on a global level, which increases the customer purchasing power. These additional complexities set new demands on both the pricing system and the business insights of pricing managers in how they balance market price optimization with the risks of cross-border trading.
Hamed Hakimian, senior consultant at Navetti and an expert in value based and market driven pricing, will debut a new solution at the Manufacturing Pricing Excellence event next week, for those managing pricing risks. "By identifying trading risks, evaluating them, and managing them appropriately, businesses can side-step what is otherwise an unavoidable loss of revenue," explains Hakimian.
This is not the first time Hakimian has been asked to address an audience about his insights into trading risk management. He recently gave a seminar on the topic for the top 100 pricing leaders in Europe at the Navetti User Conference in Stockholm. The resulting discussion helped many of the participants understand that there are practical solutions to what can become a very serious problem. "Risk mitigation is a continuous process," continues Hakimian, "but, by using the right tools and methods, the price harmonisation roadmap can be clearly defined, and profit loss is effectively minimized."
Hamed Hakimian works within Navetti to drive change, both strategically and operationally, in how companies manage their pricing strategies in relation to their value propositions. This approach is the foundation that enables Navetti's clients to properly defend and optimize their prices in a competitive landscape based on customers' perceived value.
Navetti offers a unique combination of advanced price optimization software and consulting expertise. Navetti PricePoint™ is the acclaimed software suite, an essential tool for day-to-day price optimization across all aspects of pricing strategy. This is supported by the expertise of the consultants at Navetti Consult™ that help customers achieve increased profits faster through insightful value-based pricing strategies and rapid system deployment. Originally developed to solve the complex pricing challenges in large international B2B markets, Navetti's approach of Operational Pricing is today equally at home in B2C e-commerce applications, as demonstrated by a large and growing number of blue-chip customers.
For more information, please contact:
Andreas Westling, CEO Navetti AB
Andreas.firstname.lastname@example.org, tel +46-(0)-70-60-31-003
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