special pricing agreements

Dealing with Outliers and Special Pricing Agreements

Dealing with Outliers and Special Pricing Agreements epaCUBE Price Optimizer users can quickly understand gross margin performance and review guidance for pricing and gross profit optimization. In addition, one of the powerful features of the solution is the ability to analyze all sales transactions, both those considered normal business and outliers or anomalies. The software…

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…


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…


Options for Optimized Pricing

Options for Optimized Pricing While epaCUBE offers a complete pricing and gross profit optimization software solution to guide distributors in building their internal core competence in pricing and gross profit optimization, distributors face three main options when building a core competency in pricing and gross profit optimization. A manual approach, outsourcing to a pricing consulting…

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…

your pricing strategy

You Must Own Your Own Segments and Pricing Strategy

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…


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…


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…