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 volume and price assuming that they have the authority to either set or adjust prices.
With this level of power consider how we are managing the sales force to achieve the highest price performance. Here are three key management tools to measure and control sales team pricing performance.
These are the most fundamental tools to better pricing management through the sales team. However, we find few companies that take these important steps.