Webcast

Can Advanced Pricing Really Save Your Margins?

A debate on whether B2B companies should adopt airline-style dynamic pricing to combat margin pressure, weighing the benefits of real-time price optimization against the risks of eroding customer trust.

Key takeaways

  • B2B pricing is far more complex than B2C: the same 35,000 SKUs that might have 35,000 price points in retail can have 2.1 billion unique price points in B2B when you factor in customer-specific pricing, multiple channels, and contract terms.
  • Price transparency is increasingly unavoidable. Hiding pricing behind login walls may protect margins in the short term, but customers who encounter friction often leave for competitors who make pricing visible.
  • Dynamic pricing works best for commoditized products with fierce competition. For complex, configured, or high-service products, the value proposition extends beyond price and aggressive repricing may undermine trust.
  • Real-time competitive monitoring requires operational readiness. If your organization takes six months to execute a single price change across all channels, investing in real-time data will not deliver returns.
  • Contract pricing is not going away. B2B buyers need budget predictability, and the consultative sales process for complex purchases will continue to involve negotiated pricing regardless of e-commerce automation.

B2B margins are under attack from every direction: marketplace entrants, manufacturers selling direct, new digital competitors, and customers who can now compare prices across suppliers with a few clicks. The airline industry solved a similar problem decades ago with dynamic pricing algorithms that adjust in real time based on demand, competition, and willingness to pay. Can B2B companies adopt the same approach?

The complexity of B2B pricing

The challenge becomes clear when you compare B2B to B2C. A retailer with 35,000 SKUs might have 35,000 price points: one price per product. The same 35,000 SKUs in B2B can generate 2.1 billion unique price points when you factor in customer-specific pricing, contract terms, quantity discounts, and multiple sales channels. Managing this manually is impossible, which creates the opportunity for pricing optimization software.

Research from Boston Consulting Group shows the evolution from manual, generic pricing toward automated, segment-of-one recommendations. Gartner found that companies using price optimization software see 1-5% revenue increases and 2-10% margin improvements. The evidence is mounting that dynamic pricing delivers results.

The debate format

Team Evolutionary, arguing for a measured approach to pricing, included Darren Taylor from Fleet Pride and Kristin DeLoach from Kimball International. Team Revolutionary, advocating for aggressive adoption of dynamic pricing, featured Enrico Sieni from MSC Industrial Supply and John Bruno from PROS.

Round 1: Price transparency

The first question cut to the heart of B2B pricing: should sellers require login before showing prices, or should pricing be transparent to all visitors?

Team Revolutionary argued for transparency. John Bruno framed it as a customer experience issue: the moment buyers feel friction, they go elsewhere.

The very first moment that your buyers start to feel a little bit of friction, they might have to push a button to register for an account with the expectation it is going to take a week to hear back. When they have that feeling, whether right or wrong, they are going to go elsewhere.

John Bruno, PROS

Team Evolutionary countered that price should not be the starting point. Darren Taylor argued that companies should lead with the value they bring to customers, not with price comparisons. Kristin DeLoach added that B2B purchases are complex solutions where price is just one component, and the data exchange from login enables better personalization throughout a longer sales cycle.

The audience narrowly favored requiring login, suggesting practitioners still see value in controlling when pricing is revealed.

Round 2: Competitive monitoring

The second round examined whether B2B sellers need to monitor competitive pricing in real time. Team Revolutionary expanded the argument beyond competitor prices to include supply chain conditions, inventory levels, and inflation data.

Team Evolutionary pushed back on the “real time” requirement. Kristin DeLoach pointed out that internal signals often matter more than competitive data, and that historical patterns become less predictive during disruptions like COVID. Darren Taylor warned about the trust implications of frequent price changes, citing airlines as a cautionary example.

If you get into that game you better be careful because you lose trust. How many people have been on Orbitz and they are playing games? You log in from a different computer and they jack up the price. They are managing margins but losing customers.

Darren Taylor, Fleet Pride

The audience voted 60-40 that real-time monitoring is not necessary, suggesting that most B2B companies are not ready for that level of pricing agility.

Round 3: Active repricing

The final round asked whether B2B sellers should actively reprice products based on competitive changes. Enrico Sieni argued for a middle ground: neither “set and forget” nor constant changes, but data-driven repricing that captures willingness to pay while preserving trust.

Kristin DeLoach raised the operational reality. In her experience, executing a single price change across an organization takes at least six months when you account for backend systems, processes, and multi-channel coordination. The benefits of dynamic pricing cannot be captured if the organization cannot act on the recommendations.

The audience voted 70-30 in favor of active repricing, even though they had just voted against real-time monitoring. This contradiction suggests aspiration outpacing operational readiness.

The verdict: Context determines strategy

The debate revealed that pricing strategy depends heavily on context. Three questions emerged for B2B leaders to consider.

First, how digitally mature is your organization? If you cannot execute price changes quickly across all channels, investing in real-time data will not deliver returns. Companies just starting e-commerce may actually have an advantage: they can build pricing optimization into their initial implementation rather than retrofitting it later.

Second, how commoditized is your product category? Dynamic pricing delivers the greatest returns for products with transparent competitive alternatives and high price sensitivity. For complex, configured, or high-service products, the value proposition extends beyond price.

Third, what role does price play in your customer value proposition? If price is your only differentiator, you have bigger problems than pricing software can solve. The hosts invoked the Sears example: a company that competed on price without building sustainable competitive advantage.

The future of B2B pricing

The trajectory is clear. Contract pricing will survive because B2B buyers need budget predictability. But dynamic pricing is already prevalent in markets where Amazon Business competes, and it will spread to more industries over time. Companies that build pricing capabilities now will have an advantage when their markets shift.

If we can keep our competitors focused on us while we stay focused on the customer, ultimately we will turn out all right.

Brian Beck, quoting Jeff Bezos

The Bezos quote captures the right mindset. Pricing optimization matters, but it succeeds only when embedded in a broader customer value proposition. Companies that lead with price alone will struggle against competitors who deliver more complete solutions.

Frequently asked questions

Should B2B companies show pricing to website visitors without requiring login?

The debate split on this question. Advocates for price transparency argued that forcing login creates friction that drives customers to competitors, especially when those competitors show prices openly. Advocates for login requirements argued that logging in enables personalized pricing and a better overall experience. The key consideration is your competitive position: if competitors show prices and you do not, you may lose the customer before they ever see your value proposition.

Can B2B companies use airline-style dynamic pricing?

Some can, but with important caveats. Airlines and hotels pioneered dynamic pricing for perishable inventory where unsold capacity has zero value. B2B products rarely have this characteristic. Dynamic pricing works best for commoditized B2B products with transparent competitive alternatives. For complex, configured, or high-service products, customers expect price stability and aggressive repricing can undermine trust.

What is the ROI of advanced pricing software in B2B?

Research from Gartner found that price optimization and management software vendors report customers seeing 1-5% revenue increases and 2-10% margin increases. However, these results depend on having the operational infrastructure to act on pricing recommendations. If your organization cannot execute price changes quickly across all channels, the software investment will not deliver returns.

Do B2B companies need to monitor competitive pricing in real time?

It depends on your industry and competitive dynamics. For companies competing directly with Amazon Business or in highly commoditized markets, real-time competitive intelligence is becoming table stakes. For companies selling complex, configured products where competitors do not publish prices publicly, real-time monitoring may not be possible or necessary. Internal signals like inventory levels and demand patterns may matter more.

Will contract pricing survive in a dynamic pricing world?

Yes. B2B buyers need budget predictability, and the consultative sales process for large, complex purchases will continue to involve negotiated contracts. The question is whether dynamic pricing can improve the initial contract negotiation by using data to set smarter starting points, and whether spot purchases outside the contract can be priced dynamically to capture margin on unplanned demand.

What is the risk of dynamic pricing undermining customer trust?

The risk is real. Customers who see prices change during their shopping journey, or who discover they paid more than a competitor for the same product, may lose trust in the relationship. The airline industry is cited as a cautionary example: customers have learned to game the system, and companies like Orbitz have damaged their reputations by perceived price manipulation. B2B relationships depend on trust, and aggressive pricing optimization can erode it.

Sources & methodology

  1. Boston Consulting Group pricing research
  2. Gartner study on price optimization software ROI
  3. Hanover Research study on buyer willingness to pay
  4. Master B2B Un-Webinar debate panel
  5. PROS
Andy Hoar Andy Hoar
Co-Founder, Master B2B

Andy is a Co-Founder of Master B2B, founder of Paradigm B2B and author of the book Bot2Bot: The New Future of B2B Commerce. Andy is one of the leading global authorities on B2B commerce strategy.

Brian Beck Brian Beck
Co-Founder, Master B2B

Brian is a co-founder of Master B2B, Managing Partner of Amazon agency Enceiba, and author of the book "Billion Dollar B2B Ecommerce." Brian has also been C-level digital commerce executive with two decades of experience.

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