Many manufacturers price their products without fully understanding what it costs to make them. And without that clarity, it’s impossible to negotiate pricing that both protects margin and builds trust with customers.
A good salesperson understands and solves the customers problems. But the sales teams often treat pricing as a numbers game—close as many deals as possible, as fast as possible. But pricing is not just about the number. It’s about the relationship. Strong pricing negotiations, when done with insight, reinforce the partnership between manufacturer and customer.
Effective pricing must sit between two guardrails: what the market is willing to pay (informed by customer and competitor intelligence) and the actual cost of making the product. That lower bound—the true cost—is often the least understood. And when it’s missing, manufacturers resort to guesswork or broad-stroke pricing tactics.
Take what happens when unplanned costs hit—like spikes in logistics or new tariffs. Many companies respond by issuing blanket price increases across all SKUs. But across-the-board hikes—5%, 10%, or more—tend to backfire. They frustrate customers, damage relationships, and often trigger pushback or lost sales.
Strengthen Customer Relationships and Protect your Margins
A smarter, more strategic approach is possible with accurate product-level costing.
When you understand the real margin on every SKU and every customer, you can tailor your pricing actions. Instead of raising prices across the board, you adjust selectively—raising prices only on underperforming items while holding or even lowering prices on others. This targeted strategy not only protects margins but opens new ways to deepen customer partnerships.
Vayoom helps manufacturers implement this approach by treating every customer as a “Customer Profit Center.” With clear cost visibility and a portfolio-wide view, you can uncover levers to grow volume, negotiate more flexibly, and build long-term value on both sides.
Smarter pricing isn’t just about numbers—it’s about insights. And it starts with knowing your true cost.
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