Month: April 2016

Inside SPA: The Epicor-SPA Program

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There is no greater profit lever you can pull for your business than a disciplined pricing strategy. The Epicor Strategic Pricing module simplifies the task of getting the prices you charge to their optimal level. Watch our collection of videos to learn about the power of strategic pricing with Epicor.

For every product, for every customer, there is a price that produces the optimal gross margin – the highest margin you can obtain while retaining the customer’s business. What that price is depends on multiple factors, from the amount of business you do with a customer annually to the particular item being ordered. Up until now, determining that right price for every item has been a formidably complex task. With Epicor Strategic Pricing, that task becomes as simple as a few keystrokes.

Research conducted by SPA has shown that most distributors either charge customers too little or too much for the products they buy. Both have pitfalls: charge customers too much, and they are less likely to do more business with you; charge them too little, and you’re leaving money on the table. Strategic Pricing helps you get all your transactions to that optimal price – not too high, not too low, but just right.

The Strategic Pricing module analyzes your database for customer and order information and then classifies customers by type and size. It then exports your customer data to SPA, which sends back recommendations for pricing items by customer and product. The optional Pricing Structure service from SPA will recommend optimal discount structures across customer and item categories, and the optional Customer SKU service from SPA will recommend pricing for specific customer/item combinations for your best customers. These recommendations can
be imported into your Epicor solution, providing easy updating and maintenance of your pricing structures.

Benefits

  • Increase gross margins anywhere from two to four percentage points in the first year alone on affected items
  • Maximize profits by squeezing higher gross margins out of less price-sensitive transactions
  • Support a pricing architecture that is strategic, market-based, and disciplined
  • Build customer loyalty by offering each customer maximum value for money

Click here to learn more.

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.

Battle for Margin > SPASIGMA Negotiation Workshop & Pricing Strategy Seminar in Las Vegas June 9-10

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Join us in Las Vegas June 9-10 at the Mandalay Bay hotel for our next Battle for Margin event. It is always a great way to keep current on the latest in Strategic Pricing tactics, technology, and negotiation training as well as other related topics that will allow your company to stay competitive, improve financial performance, and drive shareholder value.  

battle-for-margin-las-vegas

Attend our complimentary “Battle for Margin” two day event in Las Vegas, NV 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, June 9, 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.

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, June 10, 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.

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.

SPASigma Featured in The Distributor Channel article “Discounting based on Quantity?”

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SPASigma was featured in a recent The Distributor Channel article, “Discounting based on Quantity?”, which discusses the power of effective price negotiations and why distributors must avoid giving “unearned” discounts.

Excerpts of the article follow.

“For many folks the idea of “locking in” business by offering up a special discount seems to make sense when future potential is involved.”

Here’s how it works.  Acme Manufacturing has yet to purchase your new product but based on your knowledge of the Acme’s size and an intuition that Acme could buy lots of your product, you provide a discount.

“Our analysis of many first time sales situations, indicates a couple of key points:”

First, the discounts are provided unilaterally, with no probing of the customer’s current purchase price.  What’s worse, we see this tactic used with new, emerging technologies and products never before introduced to the customer.  Sometimes, the seller offhandedly informs the customer, “The normal price for this product is $1,000, but I am going to knock off a hundred dollars so your ‘special price’ will be $900.”  Other times, the seller just provides a discount without even mentioning the deal.

Second, sellers provide these special deals without taking time to gather significant information from the customer on the value created by the product.  Many times sellers base their need to discount on information provided about a solution that didn’t really work; assuming something that didn’t work can even be called a solution.

“There are three points sellers must understand…”

  1. Customers don’t have a true appreciation for discounts they see as “unearned.” According to research cited by negotiation expert Tony Perzow of SPASigma, potential customers see no real value in discounts which do not require something in return on their part.  What might be a better approach?  A discount which is tied to a long term commitment, a discount contingent upon placing a multi-piece order or a discount involving purchasing associated products.
  2. Once the price level has been set, it is very difficult to raise the price. Once a price is set, there is little opportunity to raise the price if the customer doesn’t meet your large order criteria; and this happens quite frequently.  Further, a discount provided up-front minimizes the opportunity to profitably provide added features, services or even a deeper discount if the customer does hold the key to big order potential.
  3. Most sellers fail to understand the true cost of quantity discounting. For example, in the world of distribution, a gross margin of 25 percent is common.  Assuming there are no offsetting cost reductions such as order processing, shipping charges or discounts from your supplier, the math is relatively straight forward.  Using a 25 percent gross margin and a discount of 10 percent for the sake of easy math, we must sell something like 66 percent more product just to break even on gross margin.

Click here to read the complete article.

SPA Events

battle-for-margin-las-vegas

Battle for Margin > SPASIGMA Negotiation Workshop & Pricing Strategy Seminar

Date: June 9-10, 2016

Location: TBD Las Vegas, Nevada

Click here for other SPA event dates and times.

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.