distributor pricing improvement

Pricing’s Impact on Profitability

Pricing’s Impact on Profitability Distributors have spent many years implementing both technology and processes to reduce the cost of doing business. Often the goal is to improve productivity, customer service or create a competitive advantage. Until recently, distributors lacked the software and systems to implement their own pricing optimization program. While pricing, costs and rebates…

Details

Removing Risks in Resegmentation

Removing Risks in Resegmentation If you get your segments wrong, you can skew the data that you use for decisions across your organization. Bad segments generate increasingly inaccurate data, causing a cascade effect where bad data leads to decisions generating more bad data. Here are a few short illustrations of gross profit losses that can…

Details

Why Should You Consider Enhancing Your Segmentation Strategy?

Why Should You Consider Enhancing Your Segmentation Strategy? In analyzing the business of hundreds of distribution companies, we’ve found that most distributors rely on very simple segmentation. Some companies even operate without any segmentation, flying blind hoping to come out at a reasonable price based solely on their own instincts and their ability to muscle…

Details
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…

Details
7382239368_ba418d5b73_z

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…

Details
4432637412_3967b4a607_z

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…

Details
7-AdjustTargets

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…

Details