Month: May 2015

Webcast: How to Stop Undisciplined Discounting

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During this 60-minute webcast SPA client, Equipment Depot, will share their experiences and advice. You will gain a wealth of practical knowledge to stop margin erosion by putting a stop to your sales team member’s undisciplined discounting!

Program Description

Register to attend our webcast June 3, 2015 that starts at 2:00 PM EST Kevin Mero, MBA, PMP, Project Manager at Equipment Depot, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop their sales people from over discounting.

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 benefits we have realized from the Strategic Pricing program is having a strategy for pricing. On average we have recognized a 2% point margin improvement over 5 Operating Companies.”

– Kevin Mero, MBA, PMP, Project Manager at Equipment Depot

Click here to read more SPA Client Testimonials

SPA’s Dave Lienert will also discuss 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 will 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

This webcast draws on SPA’s experience working with hundreds of companies to drive pricing gains of 2-4 margin points on affected revenue with minimal customer pushback.

Click here to Register

Other SPA Events

Click here for other SPA event dates and times.

Sign in or click here to register on our website to view our library of past webinars which covers a variety of strategic pricing topics.

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.

Strange Inheritances

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Read an article that highlights how important it is for distributors to have clear and consistent pricing across their sales teams and geographies. If a client shops around and gets multiple answers on price from your team members, they could very well lose trust in your ability to deliver what they need when they need it. Excerpts of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and a lifetime in sales follow.

“How can poor pricing process impact customers?”

Nobody complains about your prices being too low, correct? Maybe. However, they will question your integrity when they get different prices from your company depending on who they call. And, when quantity breaks are poorly administered, they will wonder what the real price should be.

Further, if you hold prices for a very long time, absorbing price increases from suppliers over a several years, eventually price levels will need to be adjusted. Typically, this results in extraordinary emergency price increases; the kind that come after you realize you have been losing money for the past year. Distributors often report seven or eight percent increases became necessary just to stay in a break even mode. This practice nearly always puts your whole book of business at risk at the customer.

“Price process impacts profitability and gross margin”

Everyone understands the connection between gross margin and profitability from a macro level: more margin equals great profits. What they fail to understand is the relationship in an industry with very thin bottom line returns. For the typical distributor (regardless of line of trade), the bottom line is razor thin; hovering in the 2dž percent range. Allow me to break this down into the simplest terms. For every $100 dollars in sales the distributor gets to keep something just over a couple of bucks. When the gross margin falls by a percentage the two dollars can become something far less. Conversely increasing the gross margin by two points, not percent (moving from 25 percent to 27 percent), has a major impact on the bottom line.

Each time a salesperson decides to offer a special discount of just a couple percent, profitability is hammered. Holding the line on price increases in an attempt to avoid hard conversations with the customer equates to a direct hit to the bottom line.

You’ve inherited a mess, now what?

Whether you inherited the issue of poor pricing policy from others or your evil twin took control of your body and created the whole situation, you’ve got to fix it. Rest easy, you can fix the situation. It will take some time and a little planning but you will see steady process along the way. Join me as we review six time tested procedures to improve your pricing situation.

“An ounce of prevention is worth a pound of cure…”

By now you’ve no doubt surmised, fixing inherited pricing issues takes more effort than just establishing a process today. Any real pricing process must contain the following: documentation, metrics and measures, and management tools. If you miss any of these three pieces, the process is doomed to failure.

Looking back at the whole inherited pricing problem, most would wonder how something like this could even happen in an age of high powered ERP systems and computerization. But it does. Most of these same folks have been schooled in matrix pricing and have heard industry experts talk about the importance of margin improvement. Yet the problem exists.

Distributor pricing is not hard. However, it is massive. Consider a distributor with 3,000 accounts and a line card containing 10,000 SKUs. This creates over 30 Million price permutations. Balancing that many data points is not humanly possible, regardless of your skills with spreadsheet. Clearly, some kind of additional resources are in order.

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.

SPA Strategic Pricing Conference | June 12 in Las Vegas, NV

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Equal parts strategy and practical tactics, this full-day complimentary Strategic Pricing Conference in Las Vegas, NV 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 – register soon as space is limited.

Program Description

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. It will help you 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.

Space is extremely limited for this event. It is not necessary to stay at Vdara Hotel and Spa at Aria, as there are many other fine hotels in the area. There is no fee to participate in this event.

Presentation Topics

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

Click here for complete agenda

register_seminar

Client Testimonials

Listen to what our clients have to say about the power of strategic pricing tools from SPA. Conference attendees will have the chance to hear real ROI stories from real clients.

“Strategic Pricing is the single bottom-line program…in my 35-year career! It allows us an opportunity to reinvest in the growth of our business.”

“Strategic Pricing is now a way of life at our company. We have embraced SPA’s principles and strategies and the financial impact will be everlasting.”

“A big benefit we have received from Strategic Pricing is having a strategy for our pricing. It was difficult to say exactly how we decided on pricing for our customers before Strategic Pricing. Today we are three margin points ahead of last year.”

“Strategic Pricing is having a very positive impact on our bottom line. Not only is it helping us increase our margins, but is has pushed us to look at other areas and operations within our business that are also impacting our bottom line.”

Other SPA Events

Click here for other SPA event dates and times. Sign in or click here to register on our website to view our library of past webinars which covers a variety of strategic pricing topics.

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.

Strategic Pricing Events Digest | May 2015

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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.

Attendees 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

 

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 6

How to Improve Sales People’s Confidence in List Prices | Webcast

Nick Aversano, Director of Systems and Operations for Trade Supply Group, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to improve their sales people’s confidence in their list prices.

“Strategic Pricing Associates revolutionized the way our organization approaches pricing, providing an exceptional tool with which to manage this critical profit lever.”

– Nick Aversano, Director of Systems and Operations

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

 

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 3

How to Stop Undisciplined Discounting | Webcast

Kevin Mero, MBA, PMP, Project Manager at Equipment Depot, will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to stop undisciplined discounting.

“One of the biggest benefits we have realized from the Strategic Pricing program is having a strategy for pricing. On average we have recognized a 2% point margin improvement over 5 Operating Companies.”

– Kevin Mero, MBA, PMP, Project Manager at Equipment Depot

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

June 12

SPA Strategic Pricing Conference | Las Vegas, NV

Equal parts strategy and practical tactics, this full-day complimentary Strategic Pricing Conference in Las Vegas, NV 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. 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. It will help you 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.

Space is extremely limited for this event. It is not necessary to stay at Vdara Hotel and Spa, as there are many other fine hotels in the area. There is no fee to participate in this event.

Presentation Topics

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

Click here for complete agenda

Click here to register

 

Past Event Highlights

 

January 15-16 

SPA Strategic Pricing Conference | Ft. Lauderdale , FL

Equal parts strategy and practical tactics, the complimentary Strategic Pricing Conference was held in Ft. Lauderdale, FL where an outstanding group of industry experts covered key topics that are particularly relevant in a recovering economy. Presenters and panelists shared strategies on driving shareholder value and focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing companies.

Topics covered are essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business. Sessions addressed strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value. The seminar focused 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.

 

January 21

Increasing Margins with Proven Pricing Tools | Webcast 

Craig Swenson, COO of Palmer Johnson Power Systems, shared 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.

“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 

 

February 18

How Iowa Fluid Power Improves Price Realization with SPA | Webcast

Jim Kaas, President of Iowa Fluid Power, shared 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.

“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

 

March 11 

Stopping Margin Erosion with Pricing Technology | Webcast

Brandon Liebhard, Vice President at Hodell-Natco Industries, shared 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.

 

March 17-18

Affiliated Distributor – Industrial Supply Division Spring Network Meeting

SPA presented at the event that was held at the Grand Hyatt DFW in Dallas, TX.

 

April 22 

How Strategic Pricing Tools Can Identify Price-sensitive Products and Services | Webcast

Frank Tiernay, VP/GM of Summers Rubber Company, shared 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.

“The implementation of Strategic Pricing has been a tremendous learning curve in understanding the disparities of our previous pricing model.”

– Frank Tiernay, VP/GM of Summers Rubber Company

 

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.