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
You Must Own Your Own Segments and Pricing Strategy Many distributors are confused regarding a fundamental question: should I optimize pricing internally, or utilize an outsourced pricing service? Both options offer enough benefits to warrant further attention from the savvy executive. But either way, you must own the responsibility for the results of your segmentation…Details
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
Improving Segment Definitions Segmentation only leads to higher profits when you segment well. It may be necessary to modify how you think about segment design. You need to ask more questions about your customer base, look at more factors than basic demographic information and go deeper into your sales history to find similar customer groups.…Details
Basing Your Pricing Decisions on Current ERP Data Product data can be the Achilles heel of any pricing strategy. Without using your current data, you can only go so far with the science of price optimization. Your analysis is only as good as the data you start with. Preferably, the software you use to design…Details
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
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
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…Details
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
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:Details
epaCUBE will once again be attending and presenting at the annual Infor TUG U2U Conference, Feb 15-18, 2012 at the JW Marriott, San Antonio, TX. TUG • U2U is the annual conference for licensed users of Infor Distribution Software products. Over 150 sessions of technical, managerial and executive content over three days along with a…Details