Month: April 2017
Learn the Keys to Setting and Getting Optimal Prices at Battle For Margin in Las Vegas June 8-9, 2017
Watch a short video about the “Battle for Margin” two day event in Las Vegas, NV. Attendees will learn valuable lessons on how to increase their competitive advantage and improve financial performance with the SPA Solution portfolio and negotiation training services.
This big-picture seminar is focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution, manufacturing, technology and services companies.
Experts will address the topics essential to accelerating the customer value proposition, competitive positioning and market value of any distribution or manufacturing business.
The seminar addresses the strategic, analytical, process and cultural issues that are fundamental to maximizing shareholder value.
The seminar will focus on the high-level, strategic and structural issues that are easily neglected in the hustle and bustle of daily business demands. It will help you to re-focus your organization on the drivers of economic value.
Watch the following short video to learn more about the upcoming Battle for Margin event in Las Vegas.
Thursday, June 8
7:00 – 7:45 am: Breakfast
7:45 – 8:00 am: Registration
8:00 – 8:15 am: Welcome to BFM Vegas
- Overview, Agenda, Introductions
8:15 – 9:15 am: Keynote Address
9:15 – 9:30 AM: Introduction to Group Activity
9:30 – 9:45 AM: Break
9:45 – 11:30 am: Group Activity 1: Tactical Negotiations
Participants will tackle an entertaining negotiation case designed to provide a deeper understanding of the negotiating process. Once completed, the case will be critiqued based on class outcomes.
- Identify typical negotiating blind spots
- How to increase power
- Tactics and countermeasures
11:30 am – 12:00 pm: Thought Provoking Planning Session
12:00 – 1:00 PM: Lunch
1:00 – 2:30 pm: SPASIGMA Personality Quotient (PQ)
Learn hands-on tools for quickly and easily recognizing personality types. Employs the Jung Myers-Briggs “MBTI” model used by 89 of the Fortune 100.
- Quickly identify different personality profiles
- Communicate naturally and effectively with each personality type
- Win over and earn the trust of various personalities in the workplace
- Tailor your negotiation tactics based on personality type
2:30 – 2:45 PM: Break
2:45 – 4:30 pm: SPA Analytics and Tools
- SPA Overview
- SET vs. GET Tools
- SPA Analytics Concepts: Core Status, Visibility, Cost-to-Serve, Price Environment Score, Price Bands
- SPA Tools: SPA BI, SPA Contract Management, SPA Price Bands
4:30 – 5:30 pm: Roundtable – The Power of Analytics
- Conversation with existing SPA customers
- The scoop on how to get the most out of SPA tools and training
7:00 – 8:00 pm: Cocktails and Networking
8:00 – 10:00 pm: Dinner – LAGO at The Bellagio
Friday, June 9
7:15 – 8:00 am: Breakfast
8:00 – 8:05 am: Welcome Back
9:00 – 10:30 am: Group Activity 2 – Relationship-Focused Negotiations
Use what you have learned from the Tactical Negotiations workshop. Dive into a fun, complex, multiple-issue negotiation.
- Discover the difference between Transactional and Win-Win bargaining
- Strategies for crafting better long-term agreements
- How Personality Quotient relates negotiation
10:30 – 10:45 AM: Break
10:45 am – 12:00 pm: Group Activity 3 – Strategic and Long-term Negotiations
What’s after Win-Win? Take a look at leveraging your power and working through disputes in long-term relationships:
- Use analytics and scoring to identify your best-case scenario and most effective concessions
- Apply personality theory when framing your persuasive argument
- Deepen your conflict resolution skills
12:00 am – 12:30 pm: Conclusion and Wrap Up
12:30 – 1:30 pm: Lunch
1:30 – 4:30 pm: Breakout #1 – SPA Existing Client Demos
- “What’s App” Discover what’s in store for existing clients
1:30 – 4:30 pm: Breakout #2 – SPASigma Clients/Seminars
- “Show and Tell” Experience the future of learning with the SPASIGMA creative team
1:30 – 4:30 pm: Breakout #3 – Prospective Clients Demos/Sales Networking
- “Ask Me Anything” Q & A plus demos with the SPA business development team
4:30 – 5:30 pm: Cocktails
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.
Other SPA Events
Read excerpts of an article that highlights how important it is for distributors to be able to implement price increases given a backdrop of continually rising input costs and a strong economy with some forecasting 3.7 percent growth. Now is the time for distributors to raise their prices.
“Why we’ve got low margins today…”
Downward pressure on margins is the universal distributor complaint. New competitors, supplier sales teams setting prices at unsustainable levels, the internet and customer pushback are all finding their way into the discussion. Further, in spite of some major productivity advancements, operating costs continue to rise. One distributor, who closely monitors operational costs, commented costs have risen nearly 25 percent faster than offsetting gross margin gains over the post-recession era. Clearly, we need to do something.
When times are tough, margins get another squeeze. During “The Recession,” many suppliers instructed their field teams and distributors “not to let price be an issue” while grabbing what little business was available. We responded. Pricing levels extended on projects and ongoing flow business took a gross margin nose dive for manufacturers and distributors alike. The problem lies in the fundamental difference in the distributor and manufacturer business model. The distributor slice of the total “supply chain” gross margin is much smaller than that of their supply partners. For example, Manufacturers make 45-60 percent gross margin and the Distributors receive 20-30 percent. Simply put, we distributors have less wiggle room.
Once The Recession ended, we found ourselves stuck with the lower prices and lower margins. On the customer side, customers discovered new base-line low prices and latched onto the savings. With this fact freshly planted in their minds, many pushed/negotiated to extend the lower level.
“Good times are the right time to ask for a little more.”
Fortunately, most of our customers are out of their own financial crisis. They no longer need to squeeze their suppliers just to survive. The new sellers pumped into our territory are mostly settled into position. They have discovered enough accounts to justify the meager commissions needed to survive. More importantly, customers are busy. They, along with their purchasing/procurement departments, are relying on you for expanded services and dependable deliveries, not record setting prices.
If ever a time existed to push margin to a new level it is now. The window, however, is narrow. Business cycles, by their very nature, move from great to poor. According to economists, this growth spurt will extend into mid-2018. Time is short. We cannot and should not procrastinate our plan.
“Strangely, many distributors have long term pricing agreements without expiration dates.”
The customer asked for longer range pricing stability and the distributor pushed competitors out of the way with a pricing agreement. Some of these are well crafted, while others ask the question: Exactly when will the distributor ever be able to execute a price increase?
Any agreement over one year old is ripe for a price increase, regardless of your current margin. With exception given to a limited number of commodities, it’s just not reasonable to assume the cost of anything has remained the same for over a year. I recommend a proposed price increase of 2-3 points here.
When establishing new agreements, put in openings for new price increases in the future. Ideally, these would be tied to a six or twelve month cycle.
“Review all Manufacturer extended Special Pricing Agreements”
These pricing agreements negotiated trilaterally with the manufacturer, distributor and customer. Typically, distributors raise the price only when the manufacturer raises the price. Sometimes, the manufacturer price increases are not passed along to the customer. This needs to be addressed as soon as possible.
Whatever the manufacturer’s increase, move the gross margin up at least full point. To illustrate, the manufacturer increases the distributor price by 2.75 percent, the distributor increases the customer price by 3.75 percent.
Click here to read the complete article.
Webcast: SPA Customer Panel Discussion: Driving Profit Improvement Through Better Pricing and Negotiation Strategies
During this 60-minute webcast a panel of SPA clients will share their experiences and advice on how they SET optimal prices and GET improved profit margins through more effective price negotiations.
Thursday, April 27, 2017 @ 2:00 PM Eastern
Improving profit margins in today’s distribution environment is a priority for every leader in business. Pricing optimization and improved negotiation capability are two elements of an effective profit margin improvement strategy.
Webinar attendees will hear from leading distribution organizations who are leveraging solutions from SPA and SPASIGMA to SET optimal prices and GET improved profit margins through more effective price negotiations.
You’ll hear how our customers have been able to quickly implement pricing tools and strategies that have improved margins as well as how they strengthened their inside and outside sales teams by undertaking negotiation training that build sales skills to sustain the margin improvement.
Webinar panelists include Rich Chadwick (United Electric), Tom Flater (Echo Group), Bob Decker (Livingston & Haven), and Jerry Molaver (Torrington Supply). They will share how they introduced new tools and strategies in their businesses to drive margin improvement and grow their businesses profitably.
Other SPA Events
Set You and Your Team Up to Win Better Agreements at Battle For Margin
Your organization’s profits depend on the individual and collective negotiation skill of your employees – from sales to purchasing. The Battle for Margin negotiation intensive is a rare opportunity to dive deeper into negotiation strategy that will immediately drive for more profitable agreements. Don’t you and your team deserve to be set up for success?
Don’t miss the Battle for Margin – it will be held June 8-9 at the Mandarin Oriental Hotel in Las Vegas.