Month: February 2017
Strategic Pricing Associates and Tour de Force to deliver a joint solution.
Strategic Pricing Associates (SPA) Inc. and Tour de Force Inc., two market-leading, respected providers of technology and training solutions to the distribution and manufacturing industries, have announced a Partnership to deliver an integrated pricing/quoting solution based on their respective platforms.
Tour de Force, a leading provider of customer relationship management (CRM) and business intelligence (BI) software and SPA, a leading provider of pricing analytics, negotiation training and LMS to complex companies of all types have announced their intent to jointly develop and deliver a new solution offering called Tour de Force Quote to Order (QTO) Optimization powered by SPA Pricing Analytics.
“By integrating what we have developed with our Tour de Force QTO functionality and what SPA has built with their pricing analytics, the integrated solution will create tremendous shareholder value by improving our mutual clients’ work flow efficiencies and profitability by streamlining quoting, providing SPA optimized pricing recommendations and conversion to order process”, said Matt Hartman founder and CEO of Tour de Force.
Founder, President and CEO of Strategic Pricing Associates, Inc. David Bauders added, “We are extremely excited about this offering. The ability to bring pricing analytics directly into our clients’ workflow process will enable sales reps to deliver profit gains of 2-4 percent of affected sales, or $1-2 million per $50 million of affected revenue. These tools also integrate nicely with SPASIGMA’s negotiation training and other LMS offerings.”
Tour de Force and SPA Inc. will be combining the core strengths of their respected platforms to create this new offering. Through the integration to an ERP system, Tour de Force and SPA will be able to analyze and provide a SPA Pricing Cube™ pro forma that will offer customers the ability to see where they can improve profitability in their specific market. In addition to the SPA Pricing Cube™, Tour de Force and SPA will provide a QTO – SPA integration utilizing the Tour de Force Quote Manager. The SPA Pricing Bands™ from SPA will be accessible from the Tour de Force Quote Manager, allowing customers access to real-time pricing based on the SPA pricing capabilities.
The timeline for this offering is expected to hit the market in Q2 2017 and will be showcased in a joint product release by both companies.
About Tour de Force Inc.
Tour de Force, Inc. develops, sells, implements, and supports enterprise software solutions with a focus on customer relationship management (CRM) and business intelligence (BI). Tour de Force was developed for the distribution and manufacturing industries and is currently being used in a variety of B2B industries, while distributors and manufacturers continue to make up 90% of the current user base. To learn more about Tour de Force, including our cloud and on-premise solutions, visit http://www.TourdeForceInc.com.
About Strategic Pricing Associates Inc. (SPA)
SPA is the leading provider of pricing analytics, negotiation training, and LMS systems to complex companies of all types in manufacturing, distribution, equipment, services, software and technology products. Since 1993, SPA Inc. has built a strong platform of proprietary analytics to quickly and efficiently help companies convert their own invoice data into pricing architectures that maximize their pricing performance and competitive position. To learn more about SPA Inc., visit http://www.strategicpricing.com. To learn more about SPASIGMA, SPA’s training business, visit http://www.spasigma.com.
Director of Marketing
Tour de Force, Inc.
419-425-4800 ext. 2017
Negotiation is a dance. To have it go smoothly, you must be ultra-attentive to your own actions and the actions of your partner. Even the slightest, unexpected move can create a better – or worse – outcome. That’s why we’ve built negotiation tactics around the smartest actions. Here are 10:
1. Anchor them. State your very best price. When you establish your price point, you influence expectation. We tend to expect the first position we hear.
2. Throw junk. Point out negatives about whatever it is they’re trying to sell. You want to make your negotiation partner questions his or her price point. Before beginning negotiations, collect junk by asking internal stakeholders about their overall satisfaction with the vendor. Did they deliver on time? Was their customer service acceptable? Did they honor the fine print?
3. Woo them. With every bit of junk you throw, be sure to give them a positive statement, such as “We really want to make this work,” or “We really want to do business with you.”
You want to minimize conflict and open the party up to new ideas like a lower price.
Click here to access the full list and to learn more about SPASigma’s negotiation training.
This is the final article in our 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 the importance of setting and enforcing pricing authority levels and repeat previous steps as continuous improvement never stops.
As a quick review, here is the Six Sigma Process as described by Wikipedia:
“Six Sigma seeks to improve the quality output of process by identifying and removing the causes of defects (errors) 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 (“Champions”, “Black Belts”, “Green Belts”, “Yellow Belts”, etc.) who are experts in these methods. Each Six Sigma project carried out within an organization follows a defined sequence of steps and has quantified value targets, for example: reduce process cycle time, reduce pollution, reduce costs, increase customer satisfaction, and increase profits.”
As we covered in our last article on this topic, it is crucial that you build processes, systems and tools to assist teams and create reporting tools to track improvements and implement real-time visibility into business processes defects to ensure you are focusing your improvement efforts in the right areas.
In the Control phase, our job is to make sure the improvements we have put in place – stay in place. To achieve this you want to chart performance against upper and lower control limits. Run charts show single values plotted over time and indicate trends of process & shifts in process performance.
The key to success it to continuously monitor performance and measure against the control limits via Control Charts which allows you to:
- Study process variation over time
- Monitor and improve process performance
- Maintain “In-Control” processes
Additional benefits of The Six Sigma Pricing Control phase include:
- Developing an effective “Control Plan Audit Process”
- Identifying opportunities for improvement in processes, tools, and or behavior
- Establish a “Pricing Authority Matrix”
- Develop “Profitability Improvement Plans” for every customer
- Developing Change Management strategies and plans
The following are the five areas we covered in this blog series that will helped demonstrate a proven pa to Six Sigma Pricing Excellence and links to additional blogs and other content.
- Define: set roles, responsibilities, and goals for the team in alignment within the business
- Measure: build correct measurements and incentives for each person
- Analyze: use reporting tools to find opportunities to grow or challenges to fix
- Improve: build processes, systems and tools to assist teams and create reporting tools to track improvements
- Control: set and enforce pricing authority levels and repeat previous steps as continuous improvement never stops
Six Sigma Pricing related articles:
- Inside SPA: A Chat With a Six Sigma Master Black Belt on Pricing
- How to Leverage Six Sigma Methodology to Drive Continuous Margin Improvements
- Pricing Professional – The time has come
- SPA Six Sigma Pricing Program
Six Sigma Program Overview
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.
“Over time we discovered the most critical part of moving the pricing process forward came in helping people deal with change. Establishing a plan for the human reaction to all change is incredibly important.”
– Greg Preuer
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.
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
To learn how you can realize the benefits of SixSigma Pricing, contact SPA today at firstname.lastname@example.org or 216.455.1545.
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.
You owe it to yourself and your team to attend a SPASIGMA Battle for Margin negotiation intensive training seminar. These are two-day deep-dives into proven deal-winning strategies you’ll find nowhere else.
The following are just a few of the critical negotiation insights that are shared at Battle for Margin:
- Surprising negotiation planning strategies that sharpen the competitive edge
- When and how to clarify the financial impact of not moving forward
- Tactics to avoid and embrace by situation and personality type
Click here to access the full list and to learn more about SPASigma.
Other SPA Events