Month: June 2017

Client Testimonial: Alameda Electrical Distributors

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Alameda Electrical Distributors, the largest independent electrical distributor in Northern California and one of the top 100 electrical distributors in the nation, partnered with SPA to put a stop to a long term trend of margin erosion.

“The program is great and the timing couldn’t have been better for us! We would absolutely recommend SPA to other distributors.”

          – Greg Berkowitz, Director of Operations | Alameda Electrical Distributors

“Prior to working with SPA, we had a history and long term trend of margin erosion. “

Prior to working with SPA, we had a history and long term trend of margin erosion. Once we implemented SPA, that trend not only ended, it reversed. The timing of this program could not have been better based on the current economic conditions our industry is facing.

“After working with SPA we averaged between a 2%-3% increase on our gross margin.”

After working with SPA we averaged between a 2%-3% increase on our gross margin.  Since implementation of the program we have seen a bottom-line improvement of over $225,000 in nine months with additional improvements every month.

“SPA brought a level of technical skill we simply don’t have internally.”

The best part of working with SPA is the knowledge and the data. Although our team has a solid understanding of pricing and where the opportunities were, SPA brought a level of technical skill we simply don’t have internally.  It would have taken us weeks, if not months, to compile the data and conduct the analysis to show us where the real opportunities were.  Working with them allowed us to isolate and quickly focus on the opportunities.  And knowing we are maximizing our margin opportunities and we have a process in place that works allows us to work on improvements in other areas of our business.

 

Click here to read more SPA client testimonials.

 

SPA Events

Click here for other SPA Seminar dates and locations and click here for upcoming SPA webcasts.

 

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.

Client Testimonial: Embarq Logistics

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Embarq Logistics, a $750 million distributor of telecommunications products and services, partnered with SPA to increase their ability to use pricing as a strategic weapon in the marketplace by improving processes, automating functions and measuring the effects of pricing changes.

“SPA is a well-kept secret and has earned my unqualified recommendation. There should be a 1-800 number and you should call now.”

          – Brad Clark, Senior VP of Sales and Marketing | Embarq Logistics

“We consider pricing a strategic weapon in the marketplace and consequently spent a good deal of time improving processes, automating functions and measuring the effects of pricing changes.”

Our division was in the process of soliciting buyers for divestiture and we needed to improve our EBITDA as much as possible to drive up the sales price. As sophisticated as we were, we employed SPA because our results had plateaued and we thought we might be leaving money on the table.

And we were. Millions of dollars. Millions of dollars that drop right to the bottom line. SPA likes to talk about delivering 2-4 margin points but from our experience that estimate is very low. If you are not evaluating your product and customer sets for price sensitivity and setting pricing accordingly, you are likely leaving 6-10 points on the table. We provide some degree of price flexibility to our inside sales reps and even with those modifications, we still see meaningful margin improvements. We expect these increases to continue, and we will continue to cash checks with each improvement!

“SPA can help you increase your bottom line in a matter of months and we are very pleased how quickly the process happened —from the analysis to bottom line impact.”

We started in early spring 2008 and we had new pricing for 140,000 SKUs analyzed, designed and implemented by September 2008.

We’ve seen minimal pushback from customers; most haven’t even noticed the price change.  Because we were nervous about potential customer backlash, we established a control group that didn’t receive the SPA-determined price increases as a way to be sure that the SPA program would not negatively impact sales.  I tracked this every week, for every group, and I can say definitively that not only did the SPA program not hurt sales, the margins for the SPA group improved over the control group.

Our sales force had some initial concerns.   But because their compensation is weighted more heavily towards margin and because we saw an immediately benefit, which was reflected in their commission checks, they were onboard very quickly.  It also helped that this had no negative impact on our supplier relationships.

“The SPA team members are consummate professionals and quickly became an extension of our pricing team.”

They are extremely nimble, very responsive and deliver exactly what they commit to, typically ahead of schedule.  They are also extremely flexible and able to meet you where you are.  Regardless of the maturity and sophistication of your pricing discipline, they will look at your unique situation, improve it and quickly drop money to your bottom line.

Click here to read more SPA client testimonials.

 

SPA Events

Click here for other SPA Seminar dates and locations and click here for upcoming SPA webcasts.

 

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.

Webcast: Six Sigma Strategic Pricing: How to Leverage Six Sigma Methodology to Drive Profitable Growth

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“Basic human processes are 4 Sigma at best … 99% good is just not good enough.”

Greg Preuer – Former Pricing Director at Cooper Lighting and General Electric

 

The webinar will be held June 15, 2017 at 2:00 PM – 3:00 PM EDT  and will provide an overview of SPA’s Six Sigma Strategic Pricing Course. 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 complete the program will learn not only how to drive the pricing process towards excellence, they will also learn 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.

Click here to register

 

Why Six Sigma Pricing Training?
In short – graduates will improve margins by making better pricing decisions…with better processes and decision making tools. Graduates from this course will learn to chart a clear path to pricing improvement.

They will learn each of the following steps:
1) How to design and design goals which are consistent with their company’s pricing strategy.
2) How to measure and identify characteristics critical for pricing success.
3) How to analyze the current situation and steps along the way.
4) How to design an improved alternative which moves closer to the desired result.
5) How to verify that actions taken create the right results.

Click here to access more details and download our Six Sigma Pricing White Paper.

To learn how you can realize the benefits of SixSigma Pricing training online or on-site go click here.

 

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.