Case Study: AH Harris

Posted on Updated on

Read how AH Harris adopted a scientific approach to pricing which is still driving continued gross margin improvements.
“We improved the overall accuracy and consistency of pricing across the board. Our people don’t fall victim to the ‘last price paid’ trap anymore and customers are always provided with a fair and well thought out price.” As Mr. Stanek says, “This is a sustainable gain.”

Building Supplies with an Entrepreneurial Bent

Recently, we had the opportunity to speak with Jonathan Stanek, CFO of AH Harris. Jonathan exemplifies the new breed of strategically-focused CFOs. Demonstrating the actions of this new generation of CFOs, Jonathan provides not only financial staff services, but also tactical and strategic direction based on the financial and market conditions.

According to Mr. Stanek, “One of the main challenges of my job is to refocus the company’s cash on available opportunities. This includes traditional things like the careful maintenance of Accounts Receivable, management of inventory, management of rental assets, and management of financial risks but extends into streamlining other parts of the business. Because they represent a significant portion of the distribution business, freight costs were one of the priorities for command and control.”

Early in 2010, AH Harris began a plan for segmenting and justifying customer investment as part of their freight analysis. It was during this time an AH Harris Regional Manager brought Strategic Pricing Associates to Mr. Stanek’s attention.

Again quoting Mr. Stanek, “We had begun the process in house, but upon learning of SPA, decided we could drive results quicker using an outside firm. We did due diligence and explored several other companies in the pricing industry. The selection was based around three criteria: speed of implementation, completeness of the offering and feedback from current clients. And, Strategic Pricing Associates had some very credible clients who raved about the results. As a matter of fact, many openly shared the results with us.”

Finally, we asked Mr. Stanek to share his experience with our readers by laying out lessons learned. Here are his thoughts:

  • “Given the time frame required to make a scientific process really work, don’t worry about perfection. Get it out there and moving forward quickly.
  • It’s important to keep the momentum moving forward by continuing to focus on the process during the months following the initial rollout. For AH Harris, it’s been nearly four years and we are still talking up the process.
  • Expect a natural tension from employees. Different departments are incented to maximize different aspects of the business. This is a good thing.”

Click here to read the complete AH Harris case study.

Click here to learn about SPA’s approach to implementing strategic pricing.

Click here for SPA Seminar dates and locations.

Click here for upcoming SPA webcasts where you can here directly from SPA clients.

Follow SPA

To easily keep up with the latest SPA announcements, events and resources you can follow us on LinkedIn or on the following major social media channels and file sharing platforms: Twitter, Google+, Facebook, SlideShare, and YouTube.

We also encourage you to join the Strategic Pricing discussions in our LinkedIn group and to sign up to receive our Strategic Pricing Newsletter by clicking here.

Post a Comment

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s