How to make sure your pricebooks are working for you, not against you.
Do you still manage your price books manually?
When offering energy to the SME market, you will most definitely use price books or rate cards to have prices for different customer segments readily available for the brokers so they don’t have to wait to get a bespoke quote for every SME.
In addition, those price books are probably sent manually to brokers or uploaded to be made available through broker portals to allow brokers to quickly find prices. Brokers will typically choose the supplier with the lowest price for the customer and the highest margin for themselves.
– Brokers take most of the margin
– Brokers might report higher expected usages to get higher broker margins
– Brokers expect to have these prices instantly or they don’t even bother with you
The energy market is volatile so prices need to be monitored at all times and updated frequently.
So to stay competitive in the SME market, you need prices to always be available and you need to make sure you are also still making a margin.
This is where it gets hard: how to constantly keep your price books up to date and competitive?
The hurdles stopping you today:
– Manual work in spreadsheets or other tools to calculate, update and manage pricebooks in internal systems and with your broker partners.
– Pricebooks are only updated monthly, being less competitive due to larger risk premia
Additionally, by not having a robust way to update and track all of your pricebooks and SME contracts against the latest wholesale market prices, network charges and government levies, profitability can quickly become very hard to manage without constraining your business.
Price books with gorilla
With Gorilla, you manage the configuration and calculation in a dedicated, flexible system that allows you to move away from monthly or weekly price books to daily price books with the option to update them intraday.
Gorilla takes care of your price book product configuration and calculation for maximum accuracy, flexibility and speed.
We allow you to freely model your products based on the cost components you define. That allows for maximum flexibility with the most up to date and detailed data.
Run whenever necessary on the latest data and quickly rerun it to validate the difference with previous price books to decide to update a price book or approve a contract.
Calculate and share price books
Use the flexibility to configure and build your price books or start from the standard Gorilla product and adapt the configuration to your own needs. Validate the prices, update the related costs and generate price books at a click of a button. Easily share those with your broker or integrate with existing broker portals/CRM where applicable.
Validation during contract committal
You can stop there, or you can go one step further by also conducting a profitability check on every contract request coming in.
Gorilla -different from traditional pricing systems- doesn’t take care of contract management or document generation, as that’s a typical CRM responsibility in a modern IT landscape. Integrated with a CRM, however, Gorilla can quickly calculate the profitability of a contract request that comes in by comparing the original price book rate the contract is requested for with the latest price book values, to make sure you’re still going to make a decent margin on that contract with the latest forward curve.
Some retailers take it even further, and run a bespoke quote for this contract and compare that to the original price book rate the contract is requested for in order to get an even more precise representation of the actuals prices and margins for these meters. Either way, Gorilla will give you a more up to date view of the profitability of the contracts you sign, before you sign them.