Member Article

North East Serial Entrepreneur Launches an AI-powered solution to help businesses increase profits

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.

In many wholesale and similar businesses across a range of verticals, profit margins get eroded because branch managers and salespeople with pricing authority are often too eager to offer discounts. Or they use a system that tells them to give a customer a discount, regardless of what a customer is really willing to pay.

A 1% price improvement could increase profit margins 11%. Business leaders know that the right pricing strategy could have a massive impact on profits. Why don’t more companies do this?

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 where an AI-powered algorithm tells branch managers and salespeople what customers are really happy to pay, instead of relying on gut instinct, making it up, or banding discounts.

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.

Alan 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.”

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.

Following the launch, Bubo.AI already has customers and a sales pipeline in Germany, the UK, and Nordic countries.

“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.“

This was posted in Bdaily's Members' News section by Bubo.AI .