Month: January 2015

Kris Kringle’s Executive Meeting

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Read part one of a two part series of fun articles that highlight how important it is for customers to focus on the value added by distributors to their operation’s supply chain efforts and why paying a premium is worth it to Santa and his executive team. Excerpts of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and a lifetime in sales follow.

“Kris called a meeting with his top elves.”

Kris called a meeting with his top elves. These were the folks, assuming elves count as folks, who have had centuries of experience filling Santa Enterprises’ magic bags to the brim for all the nice girls and boys. And, as Kris thought back, this team had never missed a single Christmas. Through massive snow storms, candy cane shortages and even the great reindeer food shortage of 1954, they always came through; never, ever missing a single good little boy or girl.

Even though he was madder than a wet reindeer, Kris sent a politely worded invitation to the new elfin expert down in procurement, a certain Elf Pricedrop.

“We’ve saved Santa a bundle. Why, aren’t the rest of you holding up your end of the bargain?”

You are my most trusted elves. Together we have solved some mighty big problems. We can’t let this Christmas Season go down as the year Santa didn’t show up. I am opening the floor for suggestions. What can we do?”

Almost immediately, the new elf from procurement, we’ll call him Elf Pricedrop jumped from his chair, stood up, primped his fancy tie and adjusted his finely tailored jacket. “We’ve made a lot of major improvements in the way we do things. We are doing business with some of the top suppliers on the planet. The work my team has streamlined the way we handle our orders. We’ve saved Santa a bundle. Why, aren’t the rest of you holding up your end of the bargain?” he complained.

Based on the look of the rest of the top elves, Elf Pricedrop‘s words were going over like a North Pole snowball to the face. Kris Kringle asked for more feedback.

“Every new system has a few bugs to work out. We have saved so much money on this we can afford experts to fix things and life will be good…”

Elf Evergreen, whose record at the Major Toy Shop was legendary said, “Our toy train machine has been broken or running at half speed since the end of October. We’ve called our new supplier a dozen times and the best they can do is email us an updated user’s manual. The shipment of wheels for the toy cars was supposed to be here two weeks ago. The vendor says they are working on getting us some, but not until two days after Christmas. And the new internet–based guy you procurement types have sending us red paint for the fire trucks isn’t answering emails or the phone.”

Elf Mary Sugardrop from Mrs. Kringle’s kitchen joined the discussion, “The candy making has ground to a halt because the sugar plums that give everything a unique Christmas–time flavor has a strong hint of spinach. We wouldn’t even send this stuff out to the naughty list.”

Elf Pricedrop stiffened in his chair as one by one the elves doing the real work listed issues with his new crop of low cost and efficient suppliers. Finally, he said, “Every new system has a few bugs to work out. We have saved so much money on this we can afford experts to fix things and life will be good…” But before he could finish, Kris waived his magical hand. Silence. Then the big guy spoke:

“We don’t have time to fix things. We can’t postpone Christmas. When Christmas Eve rolls around, it will be now or never. And, we’re not going to disappoint anyone. Not while I still have a single ounce of life left in this formerly jolly body. Failure is not an option. Anybody else got an idea?”

“According to him, solution based distributors have some magic of their own.”

“I’ve been reading a lot about knowledge–based distributors. I kind of stumbled onto them because I like to keep an eye on that Frank Hurtte guy. You know, according to our records, he has been on the good side of the naughty and nice list for over 50 years. And, if you skip over that little pouting spree back in 1962, he would have an almost perfect record. According to him, solution based distributors have some magic of their own.”

Elf Pricedrop protested, “I believe in the old motto, eliminate the middleman and save. We’ve worked hard…” Once more Kris Kringle stopped him dead in his tracks and said. “I believe in Santa. You can stuff those old B–school sayings in a sock full of lumpy coal. We’ve got to save Christmas, how do we get these guys to help? Get Frank Hurtte on the line…”

Click here to read the complete article.

Follow SPA

To easily keep up with the latest SPA announcements, events and resources you can subscribe to our Strategic Pricing Pays blog or 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.

Case Study: Philip Rosenau Co. Inc.

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Philip Rosenau Co. Inc. selected Strategic Pricing Associates to save time in managing manufacturer price increases and provide flexibility to modify and customize forms, screens, and fields in the system.

“We have been very pleased with our Epicor Prophet 21 implementation. We went live on time and under budget. Epicor Prophet 21 was ready to go out of the box, without a lot of customization required…The Strategic Pricing module essentially paid for the whole Prophet 21 implementation process in about a year.

      – Scott Holland, Executive Vice President | Philip Rosenau Co. Inc.

Company

Philip Rosenau Co. Inc. is a diversified distributor of sanitary maintenance supplies and equipment that has been supplying cleaning solutions to the janitorial industry for nearly 60 years. Serving Pennsylvania, New Jersey, Delaware, Maryland, and Washington, D.C., the company employs 75 people in three offices, including a 65,000–square foot distribution center in Warminster, Pennsylvania, and two satellite offices and warehouses in West Chester, Pennsylvania, and New Castle, Delaware.

Challenges

  • Provide a Northeast janitorial/sanitary distributor with the business data, flexibility, and visibility into pricing to support growth.

Solution

  • Epicor Prophet 21 with Strategic Pricing

Benefits

  • Gross margins are up 2% while using Strategic Pricing
  • Saved time in managing manufacturer price increases
  • Flexibility to modify and customize forms, screens, and fields in the system
  • Seamless integration with third party applications

Focus on pricing improves margins

Holland notes that the Epicor Prophet 21 pricing service template helped Philip Rosenau considerably with pricing, which is not typically standardized in jan/san distribution. “Prophet 21 saves us countless hours in managing manufacturer increases,” he states. “With the previous system, item costs had to be changed manually, which was very cumbersome, considering there are more than 50,000 items we can supply.”

In addition, Philip Rosenau has made effective use of Strategic Pricing, a pricing architecture based on the principle that there are many small margin opportunities which, in aggregate, can yield 2% in additional pricing margin points for the distributor. It involves detailed segmentation of a distributor’s customers by size (from “tiny” to “huge”) and type (“core” and “non”–core”), profiling of their price sensitivity, analysis of past pricing performance, definition of new pricing standards, and development of metrics to support pricing processes and compensation. Recognizing the value that strategic pricing would provide to distributors, Epicor formed an exclusive relationship with Strategic Pricing Associates (SPA) to seamlessly integrate a strategic pricing module into its Prophet 21, Eclipse, and Prelude products.

According to Holland, “The Strategic Pricing module has improved our gross margins by about 2 percent, enabling us to recoup our investment quickly; it essentially paid for the whole Prophet 21 implementation process in about a year. The integration of Strategic Pricing and Prophet 21 was so easy; we could automatically generate sales data for SPA’s analysis, and then import their files back into the ERP. Best of all are the security and approvals levels that are built in, so we have complete visibility and can analyze and control pricing changes and/or exceptions.”

Click here to read the entire Philip Rosenau Co. Inc. case study.

Click here to read more SPA case studies.

SPA Events

Click here for other SPA Seminar dates and locations and click here for upcoming SPA webcasts.

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.

Strategic Pricing Events Digest | January 2014

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Our Events Digests are a compilation of info about upcoming events hosted by SPA, 3rd party events where we will participate, and highlights from recent ones.

Learn how leading manufacturing and distribution executives have unlocked the keys to faster growth, stronger customer relationships, and market-leading profitability with SPA’s proven strategic pricing processes and technology.

Upcoming Events

SPA Strategic Pricing Conference | Ft. Lauderdale , FL

January 15-16

Equal parts strategy and practical tactics, this full-day complimentary Strategic Pricing Conference and half-day client training session in Ft. Lauderdale, FL will address key topics that are particularly relevant in a recovering economy. This seminar will bring together an outstanding group of industry experts that will offer strategies on driving shareholder value.

This big-picture seminar is focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing companies. Experts will address the topics essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business. Sessions will address strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value. The seminar will focus on the high-level, strategic and structural issues that are easily neglected in the hustle and bustle of daily business demands and will help to re-focus your organization on the drivers of economic value.

David Bauders, Dolores Bauders, Jonathan Bein and Frank Hurtte will lead presentations and best-practices panels with executives of leading manufacturing and distribution businesses; with a distinguished panel of capital markets experts, led by Jason Kliewer of Baird Securities and Jim Miller of Supply Chain Equity.

Presentation Topics

  • Driving Change That Matters in a Rebound Economy
  • Panel Discussion and Presentation on Capital Markets: How to Maximize Enterprise Value
  • Best Practices Panel Discussion: Strategic Pricing in a Rebound Economy
  • The SPA Pricing Cube™ Reporting Tool
  • Best Practices Panel Discussion: Change Management and Sales Culture – Execution on the Drivers That Matter
  • Sharpening Your Value Proposition for a Global Economy
  • Conclusion: Execution Excellence in a Rebound Economy

Click here for complete agenda

Click here to register

 

Increasing Margins with Proven Pricing Tools | Webcast

January 21

Craig Swenson, COO of Palmer Johnson Power Systems, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase margins by identifying price-sensitive products and services.

To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing function, they turned to SPA to implement a proven strategic pricing initiative founded on SPA’s powerful pricing analytics tools. During this 60-minute webcast, they will share their experiences and advice that will provide you with a wealth of practical knowledge including their fast ROI and lessons learned!

“SPA has helped us turn eroding margins into a $200,000 annual margin increase in just two years! We have already upgraded to the Platinum level of SPA for 2015 and look forward to finding more opportunities to increase profits through Strategic Pricing.”

       – Craig Swenson, COO of Palmer Johnson Power Systems

SPA’s Dave Lienert will also help attendees learn how to address the following all too common issues and opportunities for increasing profitability:

  • Customer relationships focused on product/service value, not price
  • Identifying and capturing available margin premiums
  • Identifying price-sensitive products and services
  • Improving sales reps’ confidence in prices
  • Stopping undisciplined discounting
  • Tracking metrics for sales force accountability
  • Improving pricing consistency and fairness

Click here to register

 

How Iowa Fluid Power Improves Price Realization with SPA | Webcast

February 18

Jim Kaas, President of Iowa Fluid Power, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve price realization by identifying price-sensitive products and services.

To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing function, they turned to SPA to implement a proven strategic pricing initiative founded on SPA’s powerful pricing analytics tools. During this 60-minute webcast, they will share their experiences and advice that will provide you with a wealth of practical knowledge including their fast ROI and lessons learned!

“One of the biggest changes SPA has helped with is changing the culture as our focus is now on capturing additional margin points on a daily basis. This has had an effect on every portion of our business.”

      – Jim Kaas, President of Iowa Fluid Power

SPA’s Dave Lienert will also help attendees learn how to address all too common issues and opportunities for increasing profitability.

Click here to register

 

 

Stopping Margin Erosion with Pricing Technology | Webcast

March 11

Brandon Liebhard, Vice President at Hodell-Natco Industries, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop margin erosion by identifying price-sensitive products and services.

To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing function, they turned to SPA to implement a proven strategic pricing initiative founded on SPA’s powerful pricing analytics tools. During this 60-minute webcast, they will share their experiences and advice that will provide you with a wealth of practical knowledge including their fast ROI and lessons learned!

SPA’s Dave Lienert will also help attendees learn how to address all too common issues and opportunities for increasing profitability.

Click here to register

 

March 17-18

Affiliated Distributor – Industrial Supply Division Spring Network Meeting

SPA will be speaking at the event that is to be held at the Grand Hyatt DFW in Dallas, TX.

May 4-7

TUG Connects 2015

SPA will be exhibiting and speaking at the event that is to be held at the Gaylord National Harbor in Washington, DC.

May 18-21

Insights 2015 – Epicor Customer Conference

SPA will be speaking at the event that is to be held at the Gaylord Opryland in Nashville, TN.

 

June 11-12

SPA Strategic Pricing Conference | Las Vegas, NV

Equal parts strategy and practical tactics, this full-day complimentary Strategic Pricing Conference and half-day client training session in Las Vegas, NV will address key topics that are particularly relevant in a recovering economy. This seminar brings together an outstanding group of industry experts to offer strategies on driving shareholder value.

This big-picture seminar is focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing companies. Experts will address the topics essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business. The seminar addresses the strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value. The seminar will focus on the high-level, strategic and structural issues that are easily neglected in the hustle and bustle of daily business demands and will help to re-focus your organization on the drivers of economic value.

David Bauders of SPA, Dolores Bauders of SPA, Jonathan Bein of Real Result Marketing and Frank Hurtte of River Heights Consulting will lead presentations and best-practices panels with executives of leading manufacturing and distribution businesses. Space is extremely limited for this no-cost event so register soon to save your spot.

Presentation Topics

  • Driving Change That Matters in a Rebound Economy
  • Best Practices Panel Discussion: Strategic Pricing in a Rebound Economy
  • The SPA Pricing Cube™ Reporting Tool
  • Best Practices Panel Discussion: Change Management and Sales Culture – Execution on the Drivers That Matter
  • Sharpening Your Value Proposition for a Global Economy
  • Conclusion: Execution Excellence in a Rebound Economy

Click here to register

 

Past Events

September 21-23

SPA was proud to present and exhibit at the Prophet 21 User Group Connect 2014 Conference in Dallas, TX.

 

October 8

Strategic Pricing Executive Overview | Houston, TX

This complimentary half-day Strategic Pricing Executive Overview event at the George Bush Intercontinental Airport Marriott in Houston, TX addressed key topics that are particularly relevant in a unpredictable economy. Equal parts strategy and practical tactics, the seminar offered strategies on driving shareholder value with a focus on strategic pricing processes and tools.

The presenters discussed strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing companies. Experts addressed the topics essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business. The seminar addressed the strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value. Presentations also focused on the high-level, strategic and structural issues that are easily neglected in the hustle and bustle of daily business demands.

Presentation Topics

  • Driving Change That Matters in a Rebound Economy
  • Strategic Pricing in a Rebound Economy: Best Practices
  • The SPA Pricing Cube™ Reporting Tool
  • Change Management and Sales Culture: Execution on the Drivers That Matter
  • Conclusion: Execution Excellence in a Rebound Economy

Click here for complete agenda

 

October 14

Learn How IPS Corporation Uses Strategic Pricing Tools to Track Sales Force Accountability | Webcast

Nick Cassella, President of IPS Corporation’s Plumbing Group shared their journey to pricing excellence and how they are leveraging strategic pricing tools to track sales force accountability.

IPS implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing function. They shared why they selcted SPA to implement a proven strategic pricing initiative founded on SPA’s powerful pricing analytics tools. During this 60-minute webcast, they shared their experiences and advice that will provide you with a wealth of practical knowledge including their fast ROI and lessons learned!

SPA’s Dave Lienert also discussed how our solutions, which leverage experience from working with hundreds of companies to drive 2-4 margin point gains on affected revenue with minimal customer pushback, can help your company.

Attendees learned how to address the following all too common issues and opportunities for increasing profitability:

  • Customer relationships focused on product/service value, not price
  • Identifying and capturing available margin premiums
  • Identifying price-sensitive products and services
  • Improving sales reps’ confidence in prices
  • Stopping undisciplined discounting
  • Tracking metrics for sales force accountability
  • Improving pricing consistency and fairness

 

November 7

Strategic Pricing Seminar | Chicago, IL

This full-day complimentary Strategic Pricing Seminar was held at the Hyatt Regency O’Hare in Chicago, IL and addressed key topics that are particularly relevant in our current economy. The seminar brought together an outstanding group of industry experts to offer strategies on driving shareholder value.

The big-picture seminar focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing companies. Experts addressed the topics essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business. The seminar also addressed the strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value.

David Bauders of SPA, Dolores Bauders of SPA, Jonathan Bein of Real Result Marketing and Frank Hurtte of River Heights Consulting will lead presentations and best-practices panels with executives of leading manufacturing and distribution businesses. In addition, there will be a presentation by capital markets expert, David Hallett, of Lazard Middle Market LLC. Space is extremely limited for this no-cost event so register soon to save your spot.

Presentation Topics

  • Driving Change That Matters in a Rebound Economy
  • Presentation on Capital Markets: How to Maximize Enterprise Value
  • Best Practices Panel Discussion: Strategic Pricing in a Rebound Economy
  • The SPA Pricing Cube™ Reporting Tool
  • Best Practices Panel Discussion: Change Management and Sales Culture – Execution on the Drivers That Matter
  • Sharpening Your Value Proposition for a Global Economy
  • Conclusion: Execution Excellence in a Rebound Economy

Click here for complete agenda

 

November 18 

How Crawford Supply Uses Strategic Pricing Tools to Identify and Capture Available Margin Premiums | Webcast

Jeff Heksh, Sales Director of Crawford Supply shared their journey to pricing excellence and how they leverage science-based strategic pricing tools to identify and capture available margin premiums.
To implement a solution that enhanced profitability, developed pricing discipline, and removed emotion from the pricing function, they turned to SPA. During this 60-minute webcast, Crawford Supply shared their experiences and advice that provided attendees with a wealth of practical knowledge including their fast ROI and lessons learned!

SPA also shared how our solutions, which leverage experience from working with hundreds of companies to drive 2-4 margin point gains on affected revenue with minimal customer push-back, can help your company.

 

December 9

How B&B Trade Distribution Centre Uses Strategic Pricing Tools to Identify Price-sensitive Products and Services | Webcast

Robb Howe, General Manager for B&B Trade shared their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to identify price-sensitive products and services. During this 60-minute webcast, they shared their experiences and advice that will provide you with a wealth of practical knowledge including their fast ROI and lessons learned!

Attendees also learned how to address the following all too common issues and opportunities for increasing profitability:

  • Customer relationships focused on product/service value, not price
  • Identifying and capturing available margin premiums
  • Identifying price-sensitive products and services
  • Improving sales reps’ confidence in prices
  • Stopping undisciplined discounting
  • Tracking metrics for sales force accountability
  • Improving pricing consistency and fairness

 

Follow SPA

To easily keep up with the latest SPA announcements, events and resources you can subscribe to our Strategic Pricing Pays blog or 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.