The key benefits of price benchmarking

By providing price benchmarking across its global network, Bamboo Distribution maximises revenue for its clients.

Bamboo Distribution doesn’t just offer mobile phone salvage management and recycling solutions to clients all over the world, but it offers consultancy services which utilise the company’s expertise and knowledge to ensure its solutions are cost-effective, delivered on time and are fully transparent.

Part of Bamboo Distribution’s comprehensive and effective salvage management solution is achieved through effective processing and price benchmarking.

By offering a measurable pricing matrix, which underlines how prices are calculated, helps Bamboo Distribution  maximise revenues for its clients.

Being an effective tool for Bamboo Distributions and its clients, we take a look at some of the key benefits of using price benchmarking.

Price benchmarking essentially involves an organisation capturing specific data related to its costs and performance. It then analyses this cost and performance data against the similar information from a different entity.

By comparing its own prices to those of competitors in the same market, price benchmarking is typically employed when an organisation has a competitor-based pricing strategy.

Benchmarking was first introduced in the mid-1990s by Xerox Corporation. By effectively enhancing the competitiveness of an organisation, price benchmarking has since become a crucial method in business performance management.

So what are the key benefits of price benchmarking?

Invites improvement

Possibly the biggest advantage of capturing cost related data is the fact that it sets the foundation for augmenting competitiveness and bettering competitors.

In identifying some home truths and often harsh realities within a business, price benchmarking can be a vital means of ironing out differences between the current actual state of a business and its expected performance. Consequently, the findings of the benchmarking process, offers a business ammunition to change.

Establishes goals

The fact that an organisation is willing to undergo price benchmarking signals that it is embracing change in a “proactive rather than reactive manner.”

It gives companies a greater drive to establish meaningful goals which are based on performance measures.
Promotes teamwork

With goals firmly set, price benchmarking can often promote teamwork within businesses, which, as Reference for Business notes, “is driven by concrete data analysis, not intuition or gut feeling.”

Lowers overheads

By studying how competitors do things cheaper, such as using certain equipment or processes, effective benchmarking can help save money on overheads.

Increased sales and profits

Ultimately when price benchmarking is used correctly to improve a company’s operations, functions, services and products, greater sales and profits can be enjoyed.

As the Small Business Chronicle states, the company’s benchmarking ventures are often promoted via its different forms of marketing, such as company brochures, on its website, or on advertisements, which can help drive a business’s sales.

In lowering overheads such as labour costs, price benchmarking can enable companies to operate more efficiently, ultimately leading to greater company profits.

By using price benchmarking across its global network, Bamboo Distributions puts its clients in control and consequently delivers an effective solution that maximises returns and increases revenue.

To find out more information on Bamboo Distribution’s Consultancy Services and how it uses price benchmarking as part of its fully transparent salvage management operation, visit the Bamboo Distribution website.

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