Reducing your operating expenses, increasing your sales volume, and reducing your cost of goods sold all deliver bottom line profit improvement. But no element of your business mix can deliver more impact to your bottom line than strategic pricing. Watch our collection of videos to learn about the power of strategic pricing and how SPA’s clients are realizing significant margin improvements.
We have worked with hundreds of distributors and manufacturers to deliver margin gains of 2 to 4 points or more. How? By helping our clients implement a structured approach to pricing that avoids these common and costly pricing errors and approaches:
- Charging small customers less than they are willing to pay
- Missing the opportunity to charge premiums on products that are less sensitive to price
- Allowing exceptions to drive pricing architecture
- Using a cost-plus pricing approach
Making small changes to your Pricing Strategy typically delivers worth 2 to 4 margin points or more. That’s $200,000 to $400,000 per year per $10 million in affected revenue!
The Architecture of Optimized Pricing
The SPA Pricing Cube™ combines your understanding of markets with SPA’s powerful analytics, to identify the optimal pricing architecture for your business, focusing discounts on the most price-sensitive products and customers, where it will have the biggest payoff in competitive positioning; and extracting small premiums on less-sensitive products and customers.
The SPA Pricing Cube™ takes the guesswork out optimized pricing in complex environments, allowing your sales force to focus on serving the customer and driving value. Our process provides for flexibility and discipline in pricing, to create a balance that works in your business.
Strategic Pricing Videos
Click Here to access our collection of videos that provide valuable perspective for all companies that would like to improve their performance through strategic pricing.
Click here to hear what our clients have to say about the power of Strategic Pricing.
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