If you’re reading this, then chances are you currently use or are evaluating a revenue management software. You might be using or have tried Beyond Pricing or Wheelhouse, which have served the industry well. With the crisis, however, many people are rethinking everything, including pricing software.
This is a guide for both thinking about that decision, and if it's right for you, actually making a change.
Lots of people like Beyond Pricing and Wheelhouse. If you really feel things are dialed in and they’re driving a high return on investment (ROI) for you, then perhaps switching isn’t for you. Some people are well served by their existing dynamic pricing vendor, and switching software takes time. If you are comfortable with their fees, and feel like you're in control, and don't find yourself fighting the system, then perhaps switching isn't worthwhile.
That said, for the many people who have switched – here are their reasons why:
- High costs – Perfect Price never takes a percentage of revenue–making it possibly 85% less expensive
- Lack of control – Perfect Price gives you total control over your prices
- Lack of transparency – Perfect Price shows you everything – from comparables being included in algorithms to the decisions of the algorithms
For a full and unbiased comparison of Perfect Price vs other Revenue Management software, see our comparison chart.
High Costs (and low ROI)
The pitch sounds great – make 40% more money, just pay a software company 1%. However, the reality may surprise even happy customers. Many people have told us that Beyond is their second most expensive software after their PMS, sometimes running well into the six-figures. In boom times, this cost can be justified by increased revenues. If you could get the same impact at 1/10th the cost, what would ROI look like then?
A key issue is profitability. 1% of gross revenue may seem small, but when you look at the bottom line it can be a different story. In many cases, one percent of revenue is actually 10 - 20% of profit. ROI that might have been there early on gets harder and harder to achieve. At first, these were your only options. Now that software with as much or more capability is in the market at a fraction of the cost, do you need to be paying literally thousands of dollars more every month?
One customer with around 130 properties and $1 million in bookings in January realized his bill for Beyond Pricing in 1 month would have almost paid for Perfect Price for the entire year. Let's say this customer saw an incremental 10% or $100,000 from Beyond–which is great, and a tremendous achievement for any software. But looked at from the property manager's standpoint, their net profit from that incremental revenue is 20% or $20,000; Beyond Pricing costs $10,000 and salary and benefits for staff to manage it cost around $4,000, for a total cost of $14,000. Leaving our customer with just $6,000. With Perfect Price, and the same assumptions, our customer nets $15,000 of that upside.
Lack of control
The number one complaint we get about Beyond Pricing software is the need to email or ask a rep to get anything done. For a long time there was only one type of control – year-long settings of the base, minimum, and maximum prices. While additional controls have been added, you cannot make changes to lots of properties at the same time with just one action.
Contrast this with Perfect Price’s rules system, which enables any possible change you could possibly imagine. It’s too powerful to even try to fit in one paragraph – check out this explanation. A critical difference in approach is the ability to control any number of properties – not one at a time – which for larger companies is critical to efficiency.
Not only does Perfect Price give you direct control over pricing, it also lets you fine-tune the model by selecting comparables, and gives you transparency into everything – which we’ll talk about next.
Beyond Pricing and Wheelhouse have “black box” type algorithms that simply put a price on the calendar and that’s that. Perfect Price enables you to see what’s driving the price. What’s going on in your market? Which comparables is the algorithm considering? What seasonality or day-of-week effects are important? Which events are going on? All of this is at your fingertips in Perfect Price.
Perfect Price takes transparency beyond the model and gives you transparency into performance with our Overview dashboard. Here you can see how you are doing versus the market and your prior year, making it easier to make decisions – and also to see how the software is performing for you.
How to switch
Switching is never seamless, but in this case it can be straightforward and take just a few days. There are several steps; some steps may take longer for certain companies. We’re happy to discuss your specific situation with you, just set up a time here.
Steps to switch from Beyond Pricing or Wheelhouse:
- Create an account at PerfectPrice.com
- Connect your supported PMS (you’ll be led directly there)
- Set your Dynamic Minimum Stays as you have them in your existing vendor. There may be more functionality in Perfect Price (which you don’t have to use!)
- Review prices. Prices will not be deployed so you can continue to use your existing vendor.
- If prices are high or low across the board, copy “base prices” from your existing vendor
- Generate prices again in Perfect Price, and adjust base price as needed
- When you’re ready, turn deployment “On” for each unit
- Sit back and relax!
In economic downturns the companies that survive emerge stronger. Now is the perfect time to explore those projects you put off in the past — resolving those software pains you’ve reluctantly lived with, too busy to address them or too committed to turn back. Now is the time to ask: is my revenue management software everything I want it to be?
If you find your current revenue management software wanting, there’s no better time than now to make a change. Switching is hard, so we want to make the decision easy. Take this opportunity to trial our software, and let us prove to you why our dynamic pricing software is better than your existing solution!