A cost-to-serve (CTS) pricing model is far more effective in today’s environment. Using CTS to calculate pricing for different customers ensures your price will cover the value your company provides and the cost of delivering that value. … Read More
A value-based pricing culture helps distributors improve business, shifting toward pricing determinations based on what customers value, what they perceive as the distributor’s value, and the price that value is worth. In the long term, such a strategy differentiates companies … Read More… Read More
Pricing in distribution is as critical and consequential as it is complex. It’s been a constant challenge for decades, and few have found the ideal strategy to make it simpler and more effective. … Read More
Distributors who still use traditional pricing methods like cost-plus and market-based pricing often leave margin on the table. Instead, distributors should update their approach to be value-based. … Read More
In distribution, pricing is as critical as it is complex. Yet, when pricing decisions are being made, the many variables involved are often condensed and scanned in a moment rather than being strategically analyzed to determine the most optimal choices. … Read More
Crises present an opportunity for a forced reset. If you’ve been sacrificing margins to gain market share and drive the top line, this tactic won’t lead to healthy, sustainable margins. … Read More
Sales teams are greatly affected by the constraints of social distancing. They face challenges on two fronts: skill and will. … Read More
Many in distribution are focused on their revenue streams right now, but don’t let your efforts to reinvigorate revenue be a detriment to your margins. Make sure you have a strategic pricing process that empowers your teams to make informed decisions in the next normal. … Read More
We identify five rules to adhere to
for moving forward for margin recovery that’s sustainable and effective. … Read More
Distributors are turning their attentions to recovery right now, even as the constraints of COVID-19 remain. … Read More
