pricing core competence

Building Your Own Core Competency in Pricing

Building Your Own Core Competency in Pricing A holistic approach to increasing gross margin must go beyond just applying math to raise prices and must consider the distributor’s markets, objectives, cost and vendor supporting programs (special pricing agreements and rebates) sides of the equation. In reality, for most distributors, price optimization is more accurately defined…

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UpdatePricingProgram

60% of Distributors Will Implement New Pricing Programs

60% of Distributors Will Implement New Pricing Programs The 2010 NAW (National Association of Wholesalers) Study, Facing the Forces of Change®: Decisive Actions for an Uncertain Economy[1], reviewed strategic insights into the key business and economic trends affecting the wholesale distribution supply chain through 2015. While price optimization has been to this point the domain…

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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…

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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…

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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…

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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 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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