85% of B2B business leaders “believe their pricing decisions could improve”, according to a Bain & Company global survey.
Bubo.AI, a North East-based startup, founded by a serial entrepreneur and senior data scientist has solution that is already generating impressive results for companies.
A 1% price improvement could increase profit margins 11%. Business leaders know that the right pricing strategy would have a massive impact on profitability. Why don’t more companies do this?
Profit margins get eroded because branch managers and salespeople with pricing authority are often too eager to offer discounts. Or a system tells them to give a customer a discount, regardless of what a customer is really willing and happy to pay.
Alan Timothy, founder and CEO of Bubo.AI has a unique solution for this: Customer-driven pricing. Bubo.AI is a newly launched startup which is the brainchild of a team of data scientists with decades of experience.
Customer-driven pricing is whereby an AI-powered algorithm tells branch managers and salespeople what customers are really willing and happy to pay, instead of relying on gut instinct, making it up on the spot, or banding discounts.
An enormous amount of work and computing power goes into making it possible. Bubo.AI is powered by Google cloud-computing systems, doing in days and weeks what would have taken decades.
Alan Timothy, a Tees Valley-based businessman and serial entrepreneur, founded Bubo.AI in 2019. This is his sixth company, and he serves as a board member and investor in several others. Alan is also a Fellow at the University of Teesside and Northumbria University.
Bubo.AI founder and CEO, Alan Timothy, says: “Customers are rarely as price sensitive as many sellers think, or let themselves assume when deploying banding, ad hoc discounts, and other approaches to pricing.”
Alan launched Bubo.AI with another senior data scientist, Dr Huseyin Seker, formerly the Director of Enterprise & Engagement at Northumbria, and now the Associate Dean (Research and Enterprise), School of Computing and Digital Technologies at Staffordshire University.
“Clients are already delighted with the impact of Bubo.AI”, says Alan. “A UK-based distributor with tens of thousands of product ranges, was suffering serious profit erosion. Bubo.AI improved net margin 45%. For a European wholesaler, the impact was 19% higher profits in only 9 weeks.”
To announce the launch, Bubo.AI founder, Alan Timothy was invited to speak at the appliedAI Ecosystem Meetup, in Munich, Germany, in October 2019. This is a gathering of leading minds in AI and the European business community, including Daimler AG, MunichRe, Ericsson, Bosch, and many others.
Bubo.AI was well received at the appliedAI Ecosystem Meetup, and the company already has customers and a sales pipeline in Germany, the UK, and Nordic countries.
“With Bubo.AI, companies can use this pricing solution to solve one of their most serious challenges: Generate more revenue per customer, per transaction, across thousands of product ranges, whilst increasing margins without losing market share”, Alan said in an interview.