Why manufacturers need to manage Pricing, Contracts and Quotes
Summary
You do not want to be in a position where you have shipped a number of orders for which it has not yet invoiced customers, meaning money is being left on the table. Using a CRM solution allows companies to track the start and end dates of contracts, as well as revenue events. Using this information, the system automatically creates a new opportunity a few months before the contract expiration date and assigns it to an account manager for follow-up. The account manager can then either renew the existing contract or negotiate a new one, and in the process, he or she can also up-sell and cross-sell additional products, obtaining extra revenue and profit. For example, many manufacturers have contract stipulations that give them the right to increase the unit price by five percent per annum on the condition that they inform the client 30 days in advance.
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