distribution-Customer-Segments

In Distribution, Better Segments Lead to Higher Margins

In Distribution, Better Segments Lead to Higher Margins Optimized pricing is one of the best—and often untapped—sources of profit optimization for a distributor. And few strategies can improve pricing in the distribution industry as well as precise, effective application of segmentation principles. In fact, many distributors are adding two to four points of gross margin…

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The Flexibility of a Cloud Subscription

The Flexibility of a Cloud Subscription We’ve made it easy to get started with epaCUBE Profit Optimizer® by offering the software in a cloud subscription model. That means you can immediately improve your gross profit without a large capital expenditure with the financial flexibility of a monthly payment. And there’s no need to purchase new equipment…

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Vendor Contract Distribution

Analyzing the Impact of a Vendor Cost Change

Analyzing the Impact of a Vendor Cost Change Naturally, when your vendors change their costs, this has a direct impact on your profitability. And while costs are more likely to increase than decrease, cost changes almost always present you with an opportunity to improve your gross profits. Unfortunately, vendor cost changes can happen rapidly and…

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The Secret to Continuous Gross Profit Optimization

The Secret to Continuous Gross Profit Optimization epaCUBE allows you to take action to continuously improve your gross profit. Your analysis isn’t a one-time event but a process that keeps your margins moving in the right direction. Your pricing manager may want to remove some segments out of the analysis by tagging them and then…

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Optimizing Segments

Optimizing Segments Price optimization is more than just crunching numbers. It requires proper segmentation, which requires the application of your own knowledge of markets, strategy and tactics in your business and industry. Bad segments can lead to skewed data. For example, not all small customers should be treated like small customers. Some products in price-sensitive…

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Dealing with High and Low Gross Profit Outliers

Dealing with High and Low Gross Profit Outliers The most obvious and easiest place for your team to start is to address the lowest gross profit outliers that are below the statistical floor. Your pricing managers can then tag these exceptions for management action or new sales negotiations. You also need to identify the outliers…

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pricingfloors

Floors and Ceilings, Targets and Ranges

Floors and Ceilings, Targets and Ranges At the most fundamental level, the approach epaCUBE takes to distributor pricing is to analyze your sales history and then apply statistical formulae to create a minimum and maximum range, a statistical floor and ceiling, a target price and then evaluate acceptable ranges in that statistical distribution. At the…

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Distribution Pricing is More Complex Than Retail Pricing

Distribution Pricing is More Complex Than Retail Pricing The approach that many experts take to pricing optimization is based on the worlds of retail and manufacturing. Unfortunately, retail pricing is much less complex than distribution pricing. In retail, there is a fairly consistent linear relationship between volume and margin. If I lower my prices, I’m…

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Pricing Optimization Myths Busted!

ADD 2% to 4% to Your Gross Profit by Building an Optimized Pricing Matrix!

Time: Fri, Jun 29, 2012 2:00 PM – 3:00 PM EDT

Click Here to Register!

Building an optimized pricing matrix for a gross profit maximization strategy requires the balance of both art and science. epaCUBE’s Distributor Pricing Science software suite thinks like a distributor.  We understand the reasons products are grouped together when establishing prices and how consistency helps in developing relationships with customers.

Here are just a few of the topics we will be covering in this webinar:

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