B2B’s payment challenges extend to pricing
If only the B2B buying process were as simple as ordering a pair of shoes online. You’d find, say, a fleet of 18-wheelers, configured exactly how you want them, in the exact models you need. With a click of a button, you’d have an exact quote ready to go. In less than a few minutes, the fleet would be on its way.
As you know all too well, it’s unfortunately not that easy. Complex pricing structures prevent B2B sellers from offering a seamless digital buying experience. Exacerbating these challenges is the reality that buyers expect easy online buying experiences and fast delivery. And they aren’t accepting excuses.
That said, let’s talk about the pricing issues plaguing B2B brands — and how you can address them.
No surprise to anyone, B2B pricing isn’t as fixed as the B2C space. In B2C, the price is the list price. In a classic purchase scenario, that price is either discounted or reduced by some kind of coupon or promotion. But in B2B, pricing is influenced by any number of complex factors, such as:
Account status: Is the buyer economy tier or premium tier?
Contract status: Does the buyer have a specific negotiation in place that might require specific discounts?
Regional prices: Where is the buyer (Southern regions, for example, might have lower prices than the Northeast)?
Shifting commodity prices: What is the cost of the raw materials necessary (for example, copper wire or steel) on any given day? What variables (like tariffs) might increase the price?
Configuration factors: What level of customization does each buyer require?
These are just a few scenarios that complicate the B2B pricing process, before the customer even requests a quote. These issues vary across industries, growing even more complex once you bring subscription-based software solutions buyers into the picture.
Unfortunately, as customer expectations for better buying experiences grow, many B2B brands still struggle to juggle these pricing factors, leaving them unable to deliver accurate and updated quotes in a timely manner. And without the ability to generate quotes quickly, it’s impossible to offer the seamless online experience today’s buyers demand.