The recent surge in prices has caught the attention of consumers around the globe. The increase in prices is not only affecting the local supermarket but also the Product Information Management (PIM) market. It is important to determine the cause of the price hikes, whether it is due to inflation or some other factor. In this article, we will delve into the dynamics of the PIM market and explore alternative solutions to the rising prices. Understanding the driving forces behind this trend is crucial for businesses to make informed decisions.
Importance of Centralized PIM for Consistent Brand Experience
It is important to remember that regardless of the solution, a key element of any successful product data strategy is the storage and management of product-related information. This data is not only essential for internal processes but also for delivering a consistent brand experience across all channels. By keeping accurate and up-to-date information, businesses can avoid costly errors, such as shipping the wrong products or displaying incorrect pricing on their website.
A centralized product data management system enables companies to maintain consistency and accuracy in their product information. It allows businesses to manage their product catalogs efficiently, update product descriptions, and keep track of changes. Having a single source of truth for product data reduces the likelihood of discrepancies and helps ensure a seamless customer experience across all channels. With a well-structured and well-maintained product data strategy, companies can enhance their brand reputation and increase customer loyalty, leading to long-term success.
Whether you do this in your current PIM or an alternative, you should aim for a consistent brand experience across channels, both on- and offline.
Factors driving the recent PIM price increases and the rise of alternative PIM solutions
There are several factors contributing to the recent price increases in the Product Information Management (PIM) market. One significant factor is the increased demand for digital transformation as a result of remote work and business automation. Companies are investing more in technology solutions to adapt to the changing business environment, leading to increased demand for PIM solutions. This, in turn, is driving up prices as providers seek to meet this demand.
Inflationary pressures and increasing labor costs are also contributing to the rising prices in the PIM market. As the cost of living increases, so does the cost of doing business. PIM providers are facing higher expenses in terms of salaries, marketing, and other operating costs. These increased costs are reflected in the prices of PIM solutions.
However, the main reason for the PIM price increases is the up-market repositioning of tools by leading providers such as inriver and Akeneo. They are shifting from mid-market to high-end mid-market/enterprise, which allows them to charge higher prices. This repositioning is due to a lack of innovation by existing alternatives that are focused on their core domains (such as ERP or MDM) or a lack of investment in PIM-specific features.
As a result of this repositioning, there is no room for new competitors to enter the PIM market, offering alternative solutions. This competition is likely to drive innovation and lead to further changes in the PIM market as companies vie for market share and customer loyalty. Ultimately, this could result in more affordable and better-performing PIM solutions for businesses of all sizes.
Strategies for managing the price increase of PIM tools:
You are currently using a PIM (maybe even the aforementioned inriver or Akeneo) and are faced with a price hike. What to do?
- Negotiating with Vendors for Better Pricing and Discounts
One strategy for managing the price increase of PIM tools is to negotiate with vendors for better pricing or discounts. While the move up-market by leading providers such as inriver and Akeneo is hard to stop, there is still room for negotiation. Businesses can leverage their purchasing power and negotiate for better pricing, discounts, or extended payment terms. This approach can help mitigate the impact of price increases and provide some relief to businesses struggling with rising costs.
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Exploring alternative solutions to traditional PIM tools
Another strategy is to explore alternative solutions to traditional PIM tools. While open-source alternatives such as PIMCore and Akeneo have been popular choices in the past, they are also caught in the trend of increasing functionality mostly on their paid tiers. However, there are many new entrants to the market, and we can help businesses find the best alternative. Evaluating newer, more affordable options could help companies maintain their product data strategy while also managing costs.
Prioritizing IT investments based on business value and ROI to manage rising PIM costs
Lastly, businesses should evaluate and prioritize other IT investments based on business value and ROI. While PIM is a key strategic priority, money can only be invested once. Businesses need to make hard decisions and prioritize their IT investments based on their overall business objectives and expected return on investment. By taking a more holistic approach to IT investments, businesses can ensure that they are making the best use of their resources and achieving their strategic goals while also managing the impact of rising PIM costs.
How can you prepare for potential future price increases?
Maybe you have not been hit by a price increase yet, or your contract term extends well into the future. Still, it’s good to be prepared:
- Adopt Flexible IT Solutions
Preparing for future price increases requires businesses to adopt a flexible IT setup that can adapt to changing market trends and technology advancements. Headless architecture and integration platform as a service (iPaaS) can help businesses achieve this flexibility by decoupling the front end from the back end and allowing for seamless integration of different applications.
- Build a Strong Relationships with Vendor
Additionally, building a strong relationship with vendors can also help prepare for future price increases. Negotiations should be approached as a “win-win” scenario, where both parties can benefit from the agreement.
- Monitoring of Industry Trends and Emerging Technologies
Furthermore, continuously monitoring the IT landscape and industry trends is important for identifying opportunities for cost-savings and new developments. By staying informed about emerging technologies and market trends, businesses can better position themselves to navigate the challenges of the future. Chat GPT, as an AI language model, can provide valuable insights and guidance to businesses looking to stay ahead of the curve.
The recent surge in prices in the Product Information Management (PIM) market has presented challenges for businesses seeking to manage their product data effectively. While there are several factors contributing to the rising prices, including inflationary pressures and increased demand for digital transformation, the main reason is the up-market repositioning of tools by leading providers.
To manage these price increases, businesses can explore strategies such as negotiating with vendors for better pricing, exploring alternative solutions, and evaluating other IT investments based on business value and ROI. Preparing for future price increases requires businesses to adopt a flexible IT setup, build strong vendor relationships, and continuously monitor the IT landscape and industry trends. By staying informed and adopting best practices, businesses can better position themselves for success in the dynamic and rapidly evolving world of PIM. With the help of tools such as Chat GPT, companies can stay ahead of the curve and ensure that their product data strategy remains strong and effective over time.
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