Discrete Manufacturing Industry Overview

Owned by Mike Deskis
Jul 17, 2024
4 min read

DM01 - Efficient and optimized List Price (re)calculation based on pricing strategies

DM02 - Automatic recalculation of dependent Price Lists e.g. region, country, different sales channel

DM03 - Ensure (Net/List) Prices are aligned across a region (Price corridor)

DM04 - Design and deploy new pricing strategies using visual drag-and-drop “no code” configuration (Strategy Designer)

DM05 - Proactively and efficiently set a price for a new product

DM06 - Proactively and efficiently set a price for updated product (Cost / Competitor price or other changes trigger repricing)

DM07 - Leverage price guidance when quoting

DM08 - Define standard discounts & surcharges

DM09 - Customer-specific Discounts

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The discrete manufacturing industry encompasses a wide range of sectors, from automotive to electronics to aerospace. Despite the diversity of products and processes, many manufacturers face similar pricing challenges. One of the biggest hurdles is balancing the need for profitability with the pressure to remain competitive in a crowded market. This can be especially difficult when dealing with complex supply chains and fluctuating raw material costs.

Additionally, manufacturers must navigate the ever-changing landscape of technology and innovation, which can require significant investments in research and development. However, with the right strategies and tools in place, manufacturers can overcome these challenges and thrive in a dynamic industry. By leveraging data analytics, optimizing production processes, and implementing effective pricing strategies, manufacturers can achieve sustainable growth and profitability. With Pricefx, players int the industry can handle both challenges and opportunities, thus quickly adapting and innovating, setting themselves up well for success.

View all of the Discrete Manufacturing resource downloads here.

There are several pricing strategies that discrete manufacturers can use to optimize their pricing and improve their profitability. Some common strategies include:

  • Cost-plus pricing: This strategy involves adding a markup to the cost of producing a product to determine the selling price.

  • Value-based pricing: This strategy focuses on the value that a product provides to the customer, rather than just the cost of producing it. Manufacturers using this strategy may charge higher prices for products that provide more value to customers.

  • Dynamic pricing: This strategy involves adjusting prices in real-time based on changes in market conditions, demand, or other factors.

  • Penetration pricing: This strategy involves setting low prices initially to gain market share and increase sales volume.

  • Price skimming: This strategy involves setting high prices initially for new or innovative products to maximize profits before competitors enter the market.

  • Bundling: This strategy involves offering multiple products or services together at a discounted price, which can encourage customers to purchase more.

  • Promotional pricing: This strategy involves offering temporary discounts or promotions to stimulate demand and increase sales.

The most effective pricing strategy will depend on a range of factors, including the company's goals, market conditions, and customer preferences.

The transaction mechanics for pricing in the discrete manufacturing industry typically involve several steps and a few stand out in terms of how Pricefx can assist in the process:

  • Price Setting: setting the price for the product or products based on the cost to produce, market demand, competition, and other factors.

  • Quotation: provide a quotation to the customer that includes the price of the product or products, along with any applicable discounts, taxes, and other fees.

  • Negotiation: guided negotiation to sell at a better price or other favorable terms.

  • Invoicing and Payment: issue an invoice based on the terms specified in the purchase order.

These transaction mechanics can vary depending on the specific products being manufactured and the terms agreed upon by the manufacturer and customer. In some cases, manufacturers may use dynamic pricing strategies that allow them to adjust prices in real-time based on market conditions or other factors.