Servigistics Pricing is based on extensive service parts pricing expertise and proven price optimization techniques developed by ProfitScience, which was acquired by Servigistics in May 2004. For more than a decade, ProfitScience has enabled a marquee list of automotive and high tech companies to dramatically improve their financial and market performance.

“The revenue and profit impact that can be achieved through a change in the price of a service part significantly outweighs a comparable reduction in its costs,” said Dwight Klappich, Vice President at META Group. “As companies re-focus their attention from cost cutting to revenue and profit generation, they’re increasingly understanding the correlation between service parts pricing and company performance, and tapping the power of pricing optimization solutions to maximize corporate performance. We see accelerated growth in price optimization solutions driven by the continued need to drive greater profitability.”

Servigistics Pricing combines proven strategic pricing methodologies, advanced optimization techniques, market adaptive business logic, and a global, multi-language, multi-currency open architecture to provide a comprehensive service parts pricing solution. Operating interactively from a Web browser, Servigistics Pricing uses historical part data, part characteristics and market information to apply pricing strategies and recommend optimal selling prices to balance competitiveness with maximized gross margins. Pricing strategies can be modeled and executed automatically with exception-based functionality. Configurable workflow extends the value to those outside pricing but interested in price and volume performance, supporting virtually any global organization.

Servigistics Pricing customers typically achieve 10-20% improvements in gross margins, along with stronger negotiating positions with suppliers, coordinated pricing decisions across all levels of the organization, visibility into market changes, improved control over warranty expenses, and identification of undervalued parts.

“There is tremendous pressure on companies today to improve revenue and profits,” said Eric Hinkle, CEO of Servigistics. “Leading companies have discovered the untapped profit and revenue potential locked up in their service parts operations, and are using Servigistics Pricing to unlock this potential. At any given time, there is an optimal price for every part which maximizes revenue and profits; with Servigistics Pricing the task of finding and maintaining that price is automated and simplified.”