Pricing thousands of products consistently is difficult. Pricing them all appropriately is even harder.
If your back-office system applies the same margin percentage to a £30 tub of coffee as it does to a £500 multifunction printer, one of two things is likely to happen. You either give away valuable margin on the lower-value product or price the higher-value product out of the sale.
That is why JGBM has introduced MarginIQ.
What is MarginIQ?
MarginIQ is an intelligent Price Band Matrix designed to give dealers greater control over pricing and profitability.
Every product in the JGBM portfolio is assigned to a carefully structured band according to three key factors:
• Product value
• Sales performance
• Market competitiveness
Once MarginIQ is active in your back-office system, you can assign your preferred margin to each band. This provides a fast and consistent way to calculate selling prices across the JGBM range while leaving you in complete control of the margins you want to achieve.
Why do some categories have several bands?
Each letter represents a different pricing band within that category. This allows different margins to be applied to products with different values, sales patterns and levels of price sensitivity.
This is particularly important within Office Machines & Technology, where prices can range from relatively inexpensive machines to higher-value multifunction printers.
MarginIQ uses three dedicated technology bands:
• Band F for lower-value technology products
• Band G for middle-value technology products
• Band H for higher-value technology products
This prevents one blanket margin from being applied across the entire category.
More appropriate pricing
Highly visible and higher-value products often need to be priced competitively. Other products may be less price-sensitive and provide an opportunity to protect or improve margin.
A broad pricing band cannot always recognise these differences. MarginIQ banding gives dealers a more precise structure on which to base their pricing decisions.
It helps you to:
• Set appropriate margins according to product type and value
• Keep visible and higher-value products competitively priced
• Protect margin on less price-sensitive products
• Avoid applying one blanket margin across a diverse category
• Update thousands of selling prices consistently
• Reduce manual pricing work
• Manage pricing through your existing back-office system
You remain in control
MarginIQ does not dictate your selling prices.
You choose the margin assigned to each band and can adapt it to suit your customers, commercial objectives and pricing strategy.
JGBM offers guide margins if you would like a suggested starting point.
Available in Prima, EvoX & Fusion
JGBM MarginIQ is pre-loaded into Prima, EvoX and Fusion.
To start using MarginIQ, contact JGBM or speak to your back-office provider.
