Many of our clients who operate within complicated pricing environments have transactions that result in negative gross margin. There may be several reasons for these money losers but one thing for sure is that these transactions quickly drain the bottom line. Often times, manufacturing companies and wholesale distributors are not fully aware of the extent […]

Most wholesale distributors and many manufacturing companies task the sales team with setting or adjusting prices on a customer by customer basis. In most cases, a centralized pricing system where a pricing structure is maintained for field use does not exist. Instead, many distributors rely upon the skill, experience and judgment of the individual reps […]

With the majority of distributors placing pricing power in the hands of the sales teams it is most important to provide the necessary structure to support price performance. Sales teams are in a unique situation to impact financial performance. Consider the three profit drivers: sales unit volume, price and cost. Sales teams can impact unit […]

Wholesale distributors inherently operate within a complex pricing environment. Pricing complexity is simply defined as a high number of SKUs, customers and markets or channels. Consider the firm with 10,000 SKU items, 1,000 customers and five different markets or channels. The number of possible price combinations is 50 million. While it is unlikely that 50 […]

The most effective way to capture the highest profit margin and achieve your revenue goals in B2B markets is to price products and services to value – that is, recognize and communicate the economic value they deliver to your customers. We have discussed this approach through many of our past newsletters. Still, using a cost […]