Month: January 2016

Webcast: Increasing Prices and Margins Without Sacrificing Sales Volume

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During this 60-minute webcast SPA client, Mayer Electric Supply Co., will share their experiences and advice. You will gain a wealth of practical knowledge on how to increase prices and margins without sacrificing sales volume!

Program Description

Register to attend our webcast February 23 at 2:00 pm Eastern where Greg Smith, Director of Pricing at Mayer Electric Supply Co., will share their journey to pricing excellence and how they are leveraging science-based strategic pricing tools to increase prices and margins without sacrificing sales volume.

“Strategic Pricing Associates provided the roadmap to successful implementation and verifiable results.”

– Greg Smith, Director of Pricing

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.

Upcoming Seminar | February 4 – 5, 2016

SPASigma Negotiation Workshop & Pricing Strategy Seminar

Register Now
Ritz Carlton – Ft. Lauderdale, Florida

Thursday, February 4, 2016 – One Day SPASigma Negotiation Training Workshop

Everyday, 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.

Presentation Topics

  • Introduction and Overview of Program, Main Themes, and Format
  • Limo Negotiation Case (One-on-One Negotiation)
  • Tactics to Uncover Pressure
  • Buyer Tactics and Countermeasures
  • Concessions Making Strategy (Comic Video and Examples)
  • Surf Case (One-on-One Negotiation)
  • Fuzzy Money (Video Skit and Discussion)
  • Aristotle’s 3 Pillars of Persuasion (Video Sketch)
  • Satisfaction (Video and Exercise)
  • Stud Case (Team Negotiation)

Friday, February 5, 2016 – Pricing Strategy Seminar

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, President & CEO; Dolores Bauders, COO; Tony Perzow, VP Pricing Training; and Greg Preuer, VP of Strategic Accounts as well as Jason Kliewer, Director, Robert W. Baird & Co; Jim Miller, Managing Partner, Supply Chain Equity; and Paul Tieger, Senior Advisor, SPA ESPWizard will lead presentations and a panel of experts will share industry leading practices.

Presentation Topics

  • Maximizing Profits: The SPA Solutions Portfolio
  • Moderated Panel on Capital Markets
  • Tools in Practice Case Study: Buyer-Seller Negotiations
  • Tools in Practice
  • Putting it all Together
  • Moderated Best Practices Panel Discussion: Change Management and Sales Culture: Execution on the Drivers That Matter
  • Speed Reading People: Insights to Improve Negotiation Effectiveness – Deploying Personality Type Theory to Accelerate Effectiveness
  • Capitalizing on Lessons Learned – Sharpening and Accelerating Pricing Tools and Negotiation Skills
  • Call to Action – Tools and Training for Negotiation & Pricing Mastery

If you are responsible for sales, profits, or pricing related decisions at your company you will benefit from this seminar. Register soon as enrollment is limited.

You will receive additional information once you enroll. For questions about this seminar, hotel reservations or for additional information, please contact us at: info@strategicpricing.com or 216-455-1544.

Register Now

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.

Six Sigma Pricing > Define: Set Pricing Team Roles and Responsibilities, Create Goals Properly Aligned with Your Business

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This is the second in a six part blog series on how manufacturers and distributors can apply Six Sigma methodology to the pricing function to generate repeatable margin gains. This blog covers what to consider in defining pricing team members roles and responsibilities and setting properly aligned goals.

All pricing practice leaders know a disciplined process is needed to create and maintain Pricing Excellence.

As we covered in the first blog in the series, applying Six Sigma to pricing is clearly a better way to go to make pricing processes the best they can be – but… How do we get there from here?

The first step requires defining what needs improvement thoughtfully, completely, and in alignment with your business goals.

Before you can begin to set up processes to measure, analyze, control, and continuously improve your pricing processes, one must define what the problem is without stating the solution.

A starter list of what you will need to define follows:

  1. What is goal for setting up a pricing team?
  2. What part of the pricing process needs to improve?
  3. Can you identify the root problems from a numerical perspective?
  4. How often does the problem occur?
  5. What will the pricing team structure be?
  6. Where will the pricing team reside in the organizational chart?
  7. What roles are needed on the pricing team?
  8. What responsibilities will each team member have?
  9. What level of experience and skill sets are needed?
  10. Do we look internally for team members or source from outside?

SPA’s Six Sigma training drives real results focused on profitable growth and continuous improvement.

“Basic human processes are 4 Sigma at best … 99% good is just not good enough.”

Greg Preuer – Former Pricing Director at and Cooper Lighting and General Electric

Per Wikipedia Six Sigma …

“…. seeks to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, mainly empirical, statistical methods, and creates a special infrastructure of people within the organization, who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has specific value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.”

A Pricing Process founded on SPA’s Six Sigma Program includes the following:

  • Negotiating strategy and tactics
  • Value-based pricing
  • Automated decision making tools
  • Customer Profitability improvement plans
  • Sales team selling value
  • Pricing strategy and leadership
  • Consistent and fair pricing architecture
  • 2 to 4% growth in GM%
  • Pricing based on customer sensitivity
  • Continuous improvement focus

Six Sigma Master Blackbelt Greg Preuer, of SPA has created the first course designed to apply time tested Six Sigma methodology to pricing.  Those who study with Greg will learn not only how to drive the pricing process but how to sustain the gains and automate the process.  They will become Six Sigma experts (Blackbelt) in business process with a focus placed squarely on price management.

Graduates from this course will learn to chart a clear path to pricing improvement.  They will learn each of the following steps:

  • How to design and design goals which are consistent with their company’s pricing strategy.
  • How to measure and identify characteristics critical for pricing success.
  • How to analyze the current situation and steps along the way.
  • How to design an improved alternative which moves closer to the desired result.
  • How to verify that actions taken create the right results.

To learn how you can realize the benefits of SixSigma Pricing, contact SPA today at info@strategicpricing.com or 216.455.1545.

The following are the four areas we will dive into in the remaining articles in this blog series that will help illuminate the path to Six Sigma Pricing Excellence.

  1. Measure: build correct measurements and incentives for each person
  2. Analyze: use reporting tools to find opportunities to grow or challenges to fix
  3. Improve: build processes, systems and tools to assist teams and create reporting tools to track improvements
  4. Control: set and enforce pricing authority levels and repeat previous steps as continuous improvement never stops

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.

SPASIGMA Negotiation Workshop & Pricing Strategy Seminar in Ft. Lauderdale, FL | February 4-5

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For a short time, SPA is extending to you the opportunity to send one key leader (please ask if you would like to send an additional leader) of your organization (executive, pricing leader, or sales leader) to SPA’s upcoming Negotiation Training seminar on February 4-5 at the Ritz Carlton in Ft. Lauderdale.    You will need to act quickly (capacity is strictly limited to 50 such participants) to identify which individual to send to the event that will change your company’s financial future.  

Only a handful of complimentary tickets remaining

Attend our complimentary Ft. Lauderdale Negotiation & Pricing Strategy Seminar to learn how to increase your competitive advantage and improve performance. You will take back valuable information on how the SPA Solution portfolio can help grow your business and improve your bottom line.

Thursday, February 4, 2016 – One Day SPASIGMA Seminar

Everyday, 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.

SPA Battle for Margin Event Feb 4-5 in Ft. Lauderdale, FL

Presentation Topics

  • Introduction and Overview of Program, Main Themes, and Format
  • Limo Negotiation Case (One-on-One Negotiation)
  • Tactics to Uncover Pressure
  • Buyer Tactics and Countermeasures
  • Concessions Making Strategy (Comic Video and Examples)
  • Surf Case (One-on-One Negotiation)
  • Fuzzy Money (Video Skit and Discussion)
  • Aristotle’s 3 Pillars of Persuasion (Video Sketch)
  • Satisfaction (Video and Excercise)
  • Stud Case (Team Negotiation)

Watch the SPASIGMA trailer to get a quick, hard-hitting introduction to todays challenges, and the opportunity for Outside and Inside Sales organizations.

Friday, February 5, 2016 – Pricing Strategy Seminar

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, President & CEO; Dolores Bauders, COO; Tony Perzow, VP Pricing Training; and Greg Preuer, VP of Strategic Accounts as well as Jason Kliewer, Director, Robert W. Baird & Co; Jim Miller, Managing Partner, Supply Chain Equity; and Paul Tieger, Senior Advisor, SPA ESPWizard will lead presentations and a panel of experts will share industry leading practices.

Presentation Topics

  • Maximizing Profits: The SPA Solutions Portfolio
    David Bauders and Dolores Bauders of SPA will present the integrated, actionable program that drives sustainable improvements in pricing effectiveness.
  • Moderated Panel on Capital Markets
    How do best-in-class companies find ways to improve shareholder value in tough times? How do you maximize your company’s valuation? What are the pivot points of acquisition success? Our expert panel discusses the best capital markets opportunities now.
  • Tools in Practice Case Study: Buyer-Seller Negotiations
    A 30-minute negotiation using interactive role play.
  • Tools in Practice
    Teams work with case studies and utilize SPA tools to achieve better deals.
  • Putting it all Together
    Negotiation Case Study Using SPA Tools
  • Moderated Best Practices Panel Discussion: Change Management and Sales Culture: Execution on the Drivers That Matter
    Greg Preuer and principals of leading manufacturing and distribution companies
  • Speed Reading People: Insights to Improve Negotiation Effectiveness – Deploying Personality Type Theory to Accelerate Effectiveness
    Wouldn’t it be great to have x-ray vision into other people’s personalities – to know what they are thinking, what they care deeply about, their likes and dislikes? With x-ray vision you’d know how to best approach people, how to pique their interest in your ideas, how to negotiate a mutually beneficial deal, resolve conflicts, or simply help others feel more at ease relating to you.
  • Capitalizing on Lessons Learned – Sharpening and Accelerating Pricing Tools and Negotiation Skills
    David Bauders and Tony Perzow will discuss how you can increase your organization’s ability to deploy and communicate superior customer value, negotiate your fair share, and therefore increase shareholder value? How do you sharpen your company’s pricing leverage? How do you quantify and communicate customer value? What is the role of tools and training? David Bauders and Tony Perzow present a case study on the development, validation, and execution of profit maximization initiatives.
  • Call to Action – Tools and Training for Negotiation & Pricing Mastery
    Best-in-Class companies will define and execute the programs that maximize enterprise value. These companies will strategically combine analytical tools, behavioral and change management excellence, sharpened negotiation skills, and information excellence to dramatically increase enterprise value. David discusses the integrated approach to winning.

Registration

If you are responsible for sales, profits, or pricing related decisions at your company you will benefit from this seminar. Register soon as enrollment is limited.

You will receive additional information once you enroll. For questions about this seminar, hotel reservations or for additional information, please contact us at: info@strategicpricing.com or 216-455-1544.

Register Now

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.

It’s happening again: Big Manufacturers Tightening Up their Supply Chain

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Mega-Manufacturers continue their proven strategy to sustain profitability in a slow growth economy – tighten up their supply chain. While this is not the first time for many distributors, unfortunately a good many sales managers have forgotten the lessons. Excerpts of the article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and a lifetime in sales follow.

this is another page from the playbook of previous recessions

Distributors have been through this a couple of times before, but unfortunately a good many sales managers have forgotten the lessons. Many of our Millennial-generation sellers were still in school. But, this is another page from the playbook of previous recessions. Recalling the pain of the mid-90s, 2001-2002 and the Great Recession, allow me to review.

Midway through the conversation, the kind words turn sour

Our largest customers jauntily inform us they “love” doing business with us. They want to formalize our partnership and do more to strengthen the ties. Mostly, it’s a love-fest. Midway through the conversation, the kind words turn sour. Being a partner requires efficiency, effectiveness and lower supply costs for the customer. If you worked with anyone in the Automotive sector back in the 90s, you heard the pitch followed by a directive to immediately drop prices by five percent.

“Business Day ran an article outlining the new strategy of delayed payment”

After a three-year reprieve, the practice is back in play. Here are a couple of examples: In April 2015, Business Day ran an article outlining the new strategy of delayed payment. Here’s a juicy tidbit:

“Adopting a tactic widely used by 3G Capital, the Brazilian private investment group behind the recent merger of Heinz and Kraft Foods, a growing number of the world’s largest food and packaged goods companies are asking their suppliers to give them as much as four months to pay their bills – even though they typically require payment from their own customers in 30 days.”

Distributors will find themselves facing off in negotiations with some of their largest customers.

Distributors will find themselves facing off in negotiations with some of their largest customers. In many ways this is a combination of the strategies carried out during previous downturns. Strangely, very few distributors have equipped their sales teams for the battle.

Negotiations are going to be tricky and mean. In some instance, the Purchasing Dude (or Dudette) will imply there is no option, our way or the highway. Procurement teams will practice their lines. Implications will be made: Everybody provides the same stuff and exactly the same service as you. Or my perennial favorite, suppliers like you are a dime a dozen, say no and we’ll just go down to the mission and pick up another.

Practice your value pitch now. Train your salespeople on the unique stuff you provide and why it would be darned hard to replace

Don’t wait till you hear the message from the customer. Practice your value pitch now. Train your salespeople on the unique stuff you provide and why it would be darned hard to replace at the customer. Teach them to make conditional price concessions. Stuff like, “I will give you a discount but if I do you will need to begin paying for my specialist’s time” or “If we provide you with the additional payment terms, what added business will you provide to me?”

At the very least, you need to get your team some negotiations training. Last month we said, “Don’t send your sellers into a knife fight armed with a fingernail clipper.” In my opinion, this is not an optional investment.

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.