When distributors are planning price increases should they provide an advanced notice to their customers as part of their overall pricing strategy? In most cases, the distributor pricing strategists at Price Point Partners find that an informal communication to your biggest and best customers helps the increase discussion go more smoothly. Consider a verbal “heads-up” […]
Moving a manufacturing or distributor organization toward a strategic pricing capability requires the development of skills and resources to set pricing strategy and perform analyses among a variety of other crucial elements. A key function that is often overlooked is the sales team. This is the point where pricing strategies are executed and we rely […]
When setting prices for low cost items, do you apply the same margin as high cost items? The price consultants at PricePoint Partners have come across many businesses that use a single margin across products with various cost levels. While this may be an easier approach, it’s important to consider that the cost to order […]
The greatest challenge to any distributor pricing strategy program is getting the sales team on board. If the sales team does not buy in to the program it is likely to fail or fall well short of the intended results. This is particularly true of sales teams that are rewarded for sales volume. These programs reward […]
Depending on the industry that you participate in, increasing prices may be an annual part of the industry culture or it may not. Some industries increase prices on a consistent annual basis. The key lies in price increase preparation. These pricing strategies actually train the buyer to accept increases and reduce the push back seen […]