Month: September 2015

SPA Strategic Pricing Seminar in Las Vegas, NV | October 15-16

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Attending one of our seminars is a great way to keep current on the latest in Strategic Pricing tactics, technology, and training as well as other related topics that will allow your company to stay competitive, improve financial performance, and drive shareholder value.

Seminar Overview

Equal parts strategy and practical tactics, this year’s event starts with a half-day training session for current clients and concludes with a full-day complimentary Strategic Pricing Seminar.

The event will be held at the Aria Resort and Casino in Las Vegas, NV. There is no cost to enroll or attend, and you will take back valuable information on how to drive improvements in your bottom line.

The seminar will address key topics that are particularly relevant in a recovering economy as it brings together an outstanding group of industry experts – register soon as space is limited.

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SPASigma Negotiation Training and Pricing Excellence Tools | Oct 15

Every day, your organization faces tough negotiation challenges. Outside sales, inside sales, product managers, buyers, application engineers – throughout the organization, your profits are determined by the negotiating skills of your employees.

SPASigma is a new program to build, expand, and retain world-class negotiation skills throughout your organization. Using a unique combination of in-person seminars and an online academy with reinforcement activities, videos, and quizzes, SPASigma will set your team on the path to mastery of the art and science of negotiation.

This session will provide an executive view of the program:

  • Summary Presentation of Negotiation Excellence: Framework, Strategy & Tactics
  • Case Study and Interactive Negotiation Exercise
  • Executive Decisions around Learning
  • Gamification and Incentives for Participation
  • The Path to Master Black Belt Certification
  • How Far and How Fast? You Make the Call
  • The Importance of Daily Reinforcement and Retention
  • Linking Certification with the SPA Reporting Cube and SPA Price Bands
  • Six Sigma and Continuous Improvement
  • The architecture and mechanics of the LMS platform for online training and retention
  • Enrollment and course assignment activities

 

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Strategic Pricing Seminar | Oct 16

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.

Equal parts strategy and practical tactics, the seminar will address key topics that are focused on protecting and improving manufacturers and distributors’ margins.

This event brings together an outstanding group of industry experts to offer strategies on driving shareholder value.

SPA’s David Bauders, Dolores Bauders, Tony Perzow, and Greg Preuer as well as Jim Miller of Supply Chain Equity, Frank Hurtte of River Heights Consulting, and Jonathan Bein, Managing Partner of Real Results Marketing will lead presentations and best-practices panels with executives of leading manufacturing and distribution businesses.

Presentation Topics

  • Introduction – Driving Change That Matters in a Rebound Economy | David Bauders, President and CEO, SPA
  • Capital Markets: How to Maximize Enterprise Value | Jim Miller, Managing Partner, Supply Chain Equity
  • Strategic Pricing in a Rebound Economy: Best Practices | David Bauders, President and CEO, SPA
  • The SPA Pricing Cube Reporting Tool, Contract Management, SPA Pricing Bands and Purchasing Tools | Dolores Bauders, Chief Operating Officer, SPA
  • Making Money with E-commerce in a Multi-Channel World | Jonathan Bein, Managing Partner, Real Results Marketing
  • Moderated Best Practices Panel Discussion | Frank Hurtte, Greg Preuer, and Principals of Manufacturing and Distribution Companies
  • SPASigma: Negotiations Mastery for Outside and Inside Sales Reps | Tony Perzow, Vice President Pricing Training, SPA
  • The Six Sigma Pricing Process | Greg Preuer, Vice President of Strategic Accounts & Initiatives, SPA
  • Conclusion: Execution Excellence in a Rebound Economy | David Bauders, President and CEO, SPA

 

Click to access the full agenda

 

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If you can’t make it this time, SPA will also be conducting another Strategic Pricing Seminar in Ft. Lauderdale, FL on February 4-5, 2016.

 

Client Testimonials

Here 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 including our upcoming webcasts.

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.

Learn How 100s of Manufacturers and Distributors Have Used the SPA Strategic Pricing Process and Technology to Improve Margins 2-4%

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Reducing your operating expenses, increasing your sales volume, and reducing your cost of goods sold all deliver bottom line profit. But no element of your business mix can deliver more impact to your bottom line than achieving strategic pricing excellence.

We work with your team to think strategically about pricing; segment your markets; analyze your invoice data; and rebuild your pricing structures to maximize your profitability. We help you build the guidelines and process metrics to ensure effective execution. We help you train your sales force in the practical and cultural dimensions of this process.

SPA provides recommended pricing architectures and related process training to complex companies. SPA helps clients to quickly and efficiently build a more profitable pricing architecture in their enterprise system, without complex and costly integration efforts. The benefits are staggering; and they are typically accomplished in less than 90 days.

We work with our clients to segment their customer base and product/service sets. They give us a slice of invoice data that describes their actual pricing performance—who paid how much for which product/service and how many they bought—and we apply our proprietary analytical models to these data to recommend what their pricing architecture should look like. We profile the relative sensitivity of customers and products, to recommend pricing structures that focus discounting where it pays off in the market; and extract price premiums where there is less sensitivity.

Watch our informative videos about the SPA difference. You will learn the keys to achieving strategic pricing excellence and hear about the work we have done to improve margins by 2-4% for some of the biggest names in manufacturing and distribution.

Our clients comprise the largest Fortune 500 industrial companies, such as ExxonMobil, GE, Parker Hannifin, Rockwell, Mitsubishi/Caterpillar, Pella and American Standard. We also serve mid-size manufacturers.

We serve the world’s largest distributors, such as Grainger, Wesco, Industrial Distribution Group, and ThermoFisher Scientific; Caterpillar dealers; as well as hundreds of mid-size and small distributors and equipment dealers. Our distribution client base spans all major segments: industrial, electrical, building products, medical, fasteners, paper & packaging, plumbing/HVAC, chemicals, food.

Our team would be honored to help you on your journey to achieving strategic pricing excellence as well.

 

Learn More

Click here for more information about capturing pricing opportunities and improving your bottom line using our proven processes and tools.

Click here for a quick questionnaire to determine the impact Strategic Pricing can have on your company’s bottom line.

 

SPA Events

Click here to learn about our complimentary Strategic Pricing Seminar in Las Vegas, NV on October 16 where you will hear from our clients about their fast payback and significant ROI.

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 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 Featured in Industrial Supply Magazine Article on Managing Gross Margin

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The Industrial Supply Magazine article, “Are you really managing gross margin?”, discusses some techniques for managing gross margin such as segmenting suppliers, setting minimum gross margin requirements for product lines, and reviewing pricing abnormalities and deviations among others.

Excerpts of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and a lifetime in sales follow.

“Any short conversation with distributors includes the topics of gross margin”

Any short conversation with distributors includes the topics of gross margin: dollars, percentages, thoughts on GM pressure and the issues with competitors who drive gross margin downwards. But very few actively manage the gross margin of their organizations, with actively being the key word.

Most distributors approach managing gross margin as if they can only indirectly affect the value. They understand sales growth as a driver, so they manage sales. They comprehend lower cost of goods sold as a tool, so they push suppliers to give them special deals. Cerebrally, they understand increases in gross margin percentage radically impact profits, but few go further than cheerleading sessions to push their sales teams to increase GM performance.

“Avoid giving away gains from special supplier deals”

It is not uncommon for supply partners to reward distributor activity, performance or other work with some type of pricing advantage. The premise of the idea is simple: the distributor gets an extra discount which creates greater revenue via improved gross margin. But systemic breakdowns within the distributor operation are legendary. One of the well-deserved supply partner criticisms of distributors lies in their inability to control passing the price along to the customer. Extra margins designed to allow the distributor to make more money are simply passed on to the customer. The market price erodes and everybody loses.

This loss of margin building potential is so rampant that many manufacturers have resorted to passing additional gross margin along via end-of-year rebates. The arguments for and against this procedure have been debated for the past decade. But, there are simple steps to avoid the margin giveaway in the first place.

“Review pricing for abnormalities”

Who in your organization is responsible for reviewing pricing abnormalities and deviations? Back before the recession, a lot of distributors assigned someone to review invoices before they were officially entered into the system. Sometimes it was the sales manager, a senior inside sales person or another person with clout in the organization. They reviewed pricing levels for abnormalities; typically prices set too low for the situation. Somewhere between 2008 and today, this activity has largely been discontinued. Now is a good time to re-visit and re-launch the practice.

“Segment your supply partners”

The concept of segmenting customers has been with us for years, but why not segment suppliers? The issue with Barry is a good reason. Further, there are other issues that must be taken into consideration.
If you enjoy an exclusive on any line, there may be excellent opportunities for pushing gross margin forward. If any of these product lines requires spare parts, why would you consider selling them for anything besides list? A review of your customer list may uncover customers who only purchase this product line from you. Looking at the situation objectively, they probably only buy this product from you because they have no choice. Why would you offer special prices?

Another area to explore and manage in the “exclusive line” offering comes via sales to competitive distributors or resellers. Strangely, many distributor managers leave the price level of these sales to their customer service group. Again, I ask you why discount?

“Gross margin improvements impact distribution like no other business.”

A couple of points in margin improvement typically increases the distributor’s bottom line profits before interest and taxes (EBITA) by 50 percent. And, since distributors are typically valued based on a multiple of earnings, that 50 percent increase to the bottom line increases the shareholder equity by a gigantic amount. Let me toss out an example. A distributor with $20 million in sales might produce an EBITA of 4 percent, or $800,000. If the distributor was valued at eight times earnings (number for illustrative purposes but realistic), this places the company’s value at $6.4 million. Increasing gross margin by two points raises the EBITA to 6 percent or $1.2 million. The new value of the same company with $20 million in sales would now be worth $9.6 million. Many times companies with higher EBITAs are valued at a higher multiple of earnings, further illustrating the need to make margin management a priority.

With payback like this, we can only ask the question, is this really possible or just a theoretical tale spun by a consultant? I know it is both practical and possible to do. It requires some special tools (which I don’t sell, so I have no reason to lie), and some processes which best come from pricing experts like David Bauders and his Strategic Pricing Associates. But, I have witnessed the results at dozens of distributors. The results are game changers.

This article originally appeared in the Sept./Oct. 2015 issue of Industrial Supply magazine. Copyright 2015, Direct Business Media., click here to read the complete article.

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.

Webcast: How to Change the Pricing Culture in Your Company

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During this 60-minute webcast SPA client, National Diversified Sales Inc., will share their strategic pricing experiences and advice. You will gain a wealth of practical knowledge on how they changed the pricing culture in their company!

Program Description

Register to attend our webcast September 23, 2015 that starts at 2:00 PM EST where Randy Stott, CFO at National Diversified Sales Inc., will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to change the pricing culture in their company.

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 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 webinar dates and times or click here for upcoming in-person Strategic Pricing Seminars.

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.