Inside SPA > Clients Discuss the Impact of Adopting Pricing Tools on Their Sales and Customers

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The following are a few examples of SPA’s client discussing the – much to their surprise – minimal impact of adopting pricing tools on their sales and customers.

SPA Clients include over 200 manufacturing companies including Parker Hannifin, Rockwell, GEExxon Mobil, Caterpillar as well as over 400 distributors including Harry Cooper Supply Company, Industrial Distribution Group, AH Harris, and ThermoFisher Scientific.

The following are just a few of the many testimonials our clients have been willing to share publically. We hope they inspire you to explore the power of strategic pricing.

Select Client Testimonials

 

“When we were initially considering implementing SPA strategic pricing, a major concern of ours was its impact on sales. Many of us were convinced our customers would react negatively and go elsewhere. Most of us were more hopeful, but still uncertain as to what the cumulative impact would be. The bottom line was that customer push back was almost non-existent and lost sales were insignificant.”

     – Dale Stempson, Corporate Pricing Manager | Valin Corporation

“So far our experience has been that most customers do not realize that you have changed your pricing strategies. The exceptions to this have been very few.”

     – Tom Comstock, CEO | Rawsons

“I can say that our customer calls and complaints have been very, very few; less than a 20 calls across our thousands of customers and their transactions. I can also say that the potential gain is far greater than any friction that may be created by the system.”

     – Tom Falter, Pricing Director | The Echo Group

Anyone who is thinking about SP implementation will naturally have some concerns about potential customer push-back. We have had some push-back but it has been very minimal. We have had many more issues with push back from our sales force because of the cultural change we had. We have not lost any measurable business due to SP. On the contrary, we are seeing margin improvements, particularly in the Small and Tiny category. In this time of a difficult economy, that is huge for us.

A potential user needs to keep in mind a couple of things.

1) The data that SPA uses to measure and recommend pricing comes from their actual data. SP’s analytics does an outstanding job of making recommendations. We had fewer than 100 changes to their recommendations when we implemented.

2) It is time to fully utilize that sales notion that slower moving items should have a greater gross margin premium on them. Customers are fully aware of pricing on fast moving items but are not as aware on slow moving items.

Even with SPA’s recommendations, they are the first to tell you that you need to evaluate, review and test their recommendations. Each company has to evaluate their particular business, circumstances and market to make a decision. We talked to a number of users before we made the “move”. Their message was the same . . . minimal push back from the customer.

Hope this helps.

     – Larry McMullin, Corporate Controller | Harry Cooper Supply Co.

 

Click here to read more testimonials about the impact on sales and customers.

Click here to read more testimonials.

Click here to read our customer case studies.

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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.

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