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As corporate earnings face increasing pressure in today’s market, CEOs are looking for ways to boost their bottom line.  After years of cost-cutting measures (slashing headcount, selling off assets, divesting businesses, etc.) that ultimately weaken their businesses, CEOs have realized it is time to focus on one of the highest-impact yet least-utilized profit improvement strategies – pricing.

By using analytical approaches to get smarter in areas like optimizing pricing, CEOs can boost net (pocket) prices by controlling variables such as volume discounts, price exceptions, and contract negotiations on everything from packaging to payment terms.  Even small pricing changes can make a big difference. For example, just a 1% increase in realized price can translate into a 10% increase in operating profits[1].

You can maximize the impact of pricing by developing an enterprise pricing strategy that will continuously refine pricing decisions based on what is happening in real time.  Most traditional business intelligence tools or consultants cannot help you do this on a continuous basis; you need a powerful analytical solution to make it work. The SAP Price and Margin Management application by Vendavo helps you systematize and automate the art and science of pricing analysis and pricing optimization to put you back in control of your bottom line.

SAP Price and Margin Management now has the advanced pricing analytics and pricing optimization modules combined with the next-generation in-memory computing platform of SAP HANA, giving robust scalability and performance, and enabling you to process and analyze millions of transaction records in real time.  With the power of SAP HANA, you can get the profit-boosting answers you need at the speed of thought.  

Using SAP Price and Margin Management, pricing analytics, you can:

  • Discover untapped opportunities to improve profitability
  • Understand price, volume, and profitability changes
  • Use playbooks to address margin leakage and rising costs
  • Analyze Big Data to improve pricing strategies

With SAP Price and Margin Management, pricing optimization, you can:

  • Extract maximum profit from every sale
  • Empower salespeople to negotiate smart deals in real time
  • Use science to simplify the art of optimal pricing
  • Balance pricing power against pricing risk
  • Integrate pricing guidance into other key processes
  • Focus on solving problems rather than debating them

The SAP Price and Margin Management application comprises the following modules:

  • Pricing analytics
  • Pricing optimization
  • Price management
  • Deal management

As of this publishing date, pricing analytics and pricing optimization support SAP HANA, with price management and deal management to follow shortly – please refer to your SAP account executive for updated details.

To learn more about SAP Price and Margin Management, visit the page on, and read the Solution Brief.

[1] Source: The Price Advantage – Study of 1200 leading global companies, Marn et al. (McKinsey & Co.), p. 5; 2004.