Client Testimonials

Client Testimonial: Rockwell Automation

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Rockwell Automation, “the world’s largest company dedicated to industrial automation and information”, partnered with SPA to build list prices using a market-sensitive approach focused on limiting discounting and to improve its contract renewal process by identifying leakage points.

SPA provided Rockwell’s US, European, Asian, and Latin American businesses with their Product Sensitivity Profiling to build list prices using a market-sensitive approach focused on limiting discounting to products where discounting is demonstrated to produce results. Using SPA’s proprietary Price Indexing methodology, they helped Rockwell improve its contract renewal process by identifying leakage points.

SPA also developed a Distributor Strategic Pricing program for the Rockwell channel prices based on market value, not cost, resulting in increased profitability. Leading distributors, including OneSource, Van Meter, Codale, Reynolds Company, Fromm and Revere Electric have completed this program.

“Before we met the folks at SPA, our basic approach to pricing was a “peanut butter” approach…”

          – Tim McCarthy, Global Director of Contracts & Pricing | Rockwell Automation

“We applied a standard increase to a product family with no differentiation based on our customer’s buying behavior.”

We applied a standard increase to a product family with no differentiation based on our customer’s buying behavior.  SPA’s analytics allowed us to view our products from our customer’s perspective and to classify the products into high- and low-sensitivity categories, providing us a whole new set of insights on our customers. We like to use the milk and toothpick analogy to describe what SPA does:  Customers know what they are paying for milk but they don’t know what they are paying for toothpicks and they really don’t care.  SPA’s process builds on this notion.

“Because a significant amount of our business is under agreements, we were going from year to year realizing little to no price yield, year over year.”

Because a significant amount of our business is under agreements, we were going from year to year realizing little to no price yield, year over year. Within a 3-4 month period of starting the analysis with SPA, we saw significant gains. Now we are applying what we’ve learned to Latin America, Asia Pacific and are working through the process a second time  for U.S. pricing.  And we expect to see more improvements in our business.

“Without SPA’s involvement, our distributors would not have been as receptive as they were…” 

SPA also helped us roll this out to our distributors.  Without SPA’s involvement, our distributors would not have been as receptive as they were; I’m certain that, had we done this without SPA, we would have gotten pretty significant push back. We worked hand in glove with SPA, and there were no surprises.

“Our work with SPA has been very successful.”

This has been pretty painless — we’ve been surprised at how little pushback we have gotten, both internally and externally. And after seeing one year of results, it’s been an even easier sell.

Our work with SPA has been very successful.

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.

Inside SPA > Clients Discuss the Impact of Adopting Pricing Tools on Their Sales and Customers

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The following are a few examples of SPA’s client discussing the – much to their surprise – minimal impact of adopting pricing tools on their sales and customers.

SPA Clients include over 200 manufacturing companies including Parker Hannifin, Rockwell, GEExxon Mobil, Caterpillar as well as over 400 distributors including Harry Cooper Supply Company, Industrial Distribution Group, AH Harris, and ThermoFisher Scientific.

The following are just a few of the many testimonials our clients have been willing to share publically. We hope they inspire you to explore the power of strategic pricing.

Select Client Testimonials

 

“When we were initially considering implementing SPA strategic pricing, a major concern of ours was its impact on sales. Many of us were convinced our customers would react negatively and go elsewhere. Most of us were more hopeful, but still uncertain as to what the cumulative impact would be. The bottom line was that customer push back was almost non-existent and lost sales were insignificant.”

     – Dale Stempson, Corporate Pricing Manager | Valin Corporation

“So far our experience has been that most customers do not realize that you have changed your pricing strategies. The exceptions to this have been very few.”

     – Tom Comstock, CEO | Rawsons

“I can say that our customer calls and complaints have been very, very few; less than a 20 calls across our thousands of customers and their transactions. I can also say that the potential gain is far greater than any friction that may be created by the system.”

     – Tom Falter, Pricing Director | The Echo Group

Anyone who is thinking about SP implementation will naturally have some concerns about potential customer push-back. We have had some push-back but it has been very minimal. We have had many more issues with push back from our sales force because of the cultural change we had. We have not lost any measurable business due to SP. On the contrary, we are seeing margin improvements, particularly in the Small and Tiny category. In this time of a difficult economy, that is huge for us.

A potential user needs to keep in mind a couple of things.

1) The data that SPA uses to measure and recommend pricing comes from their actual data. SP’s analytics does an outstanding job of making recommendations. We had fewer than 100 changes to their recommendations when we implemented.

2) It is time to fully utilize that sales notion that slower moving items should have a greater gross margin premium on them. Customers are fully aware of pricing on fast moving items but are not as aware on slow moving items.

Even with SPA’s recommendations, they are the first to tell you that you need to evaluate, review and test their recommendations. Each company has to evaluate their particular business, circumstances and market to make a decision. We talked to a number of users before we made the “move”. Their message was the same . . . minimal push back from the customer.

Hope this helps.

     – Larry McMullin, Corporate Controller | Harry Cooper Supply Co.

 

Click here to read more testimonials about the impact on sales and customers.

Click here to read more testimonials.

Click here to read our customer case studies.

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.

Inside SPA > Client Testimonials

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The following are a few examples of SPA’s client testimonials that showcase the powerful strategic advantage and fast ROI gained by implementing SPA’s strategic pricing tools and processes.

SPA Clients include over 200 manufacturing companies including Parker Hannifin, Rockwell, GEExxon Mobil, Caterpillar as well as over 400 distributors including Harry Cooper Supply Company, Industrial Distribution Group, AH Harris, and ThermoFisher Scientific.

The following are just a few of the many testimonials our clients have been willing to share. We how they inspire you to explore the power of strategic pricing.

Select Client Testimonials

“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.”

     – Equipment Manufacturer

“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.”

     – Pluming Supply Distributor 

“As an Industrial Distributor with a record of fifty-five consecutive profitable years, we thought we knew both how to operate a business and price products. As the SPA Pricing Program was implemented, we moved from being skeptics to believers as we saw a 2% overall gain in gross margin before the first year, and after three years margin growth continues!”

     – Industrial Distributor

“We dabbled in strategic pricing on our own but never got the results that we needed until we hooked up with SPA. The greatest benefit we have seen is the margin enhancements. We started the SPA program in the summer of 2006. Shortly after that, we suffered very difficult market conditions, however, because of the SPA program, we had our best year ever.”

     – Electrical Equipment Manufacturer

“I was the biggest non believer of strategic pricing because Zatkoff Company, an $80 million distributor of seals and packing, is primarily an automotive distributor. The automotive business isn’t doing very well and I felt that there was no possible way that we could increase margin. SPA convinced me to give them a try and it has been nothing but wonderful things after that.”

     – Automotive Parts Distributor

 

Click here to read more testimonials.

Click here to read our customer case studies.

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.

Client Testimonial: Industrial Distribution Group

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IDG, a $500 million industrial distributor with 31 sales offices and 10 distribution centers, partnered with SPA to get help creating the discipline, controls, process and strategy they lacked in pricing.

“Our pricing approach was “cost-up.” …pricing decisions were in the hands of our sales and service teams.   The lack of any centralized process or control was somewhat embarrassing.”

          – Charlie Lingenfelter, CEO | Industrial Distribution Group

“When selecting someone to help us, we looked for someone who could offer an aggressive and comprehensive approach.”

We chose SPA because they offered not only a program, but also a compelling philosophy which made sense to us.

“Positive results?  There have been so many.”

Our investment in the SPA program has delivered a 6-fold return on investment.  Our profitability improved by $3 million in the first year alone.  And, we get far fewer customers calling with pricing complaints, which frees up our associates to focus on providing real service to our customers.

“Another side benefit is that SPA stimulates our thinking.” 

Working with them has given us ideas we’d never have thought of ourselves.  I always learn something new, something that makes a difference, every time I’m with them.  The relationship has been extremely rewarding, across the board.

Click here to read the entire Industrial Distribution Group client testimonial.

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.

Inside SPA > Client Testimonials

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The following are a few examples of SPA’s client testimonials that showcase the powerful strategic advantage and fast ROI gained by implementing SPA’s strategic pricing tools and processes.

“SPA enables you to tighten up these variances and increase your margins. In the products we have added so far to the program, we have seen about a 2.5 percent margin increase year-over-year in our first year with SPA.”

– Jimmy Sobeck, VP of Finance & Administration | New South Construction Supply

 

“The results are as predicted…Strategic Pricing works! As long as you spend the time to analyze the data properly, there can be a fast payback.”

– Larry McMullin, Chief Financial Officer | Harry Cooper Supply

 

“Strategic Pricing provided the easiest ROI I’ve ever seen in my career. We tell other Prophet 21 customers, Strategic Pricing pays for the entire system investment!”

– Russ Frazee, COO | FCx Performance Inc.

 

“We now understand that total optimized pricing is not an event, but a lifestyle. And this price-optimizing lifestyle will bring more profi tability and allow us to serve our customers better, a winning combination. We are very pleased with the results of Strategic Pricing so far.”

– Dan Rice, CEO | Service Supply of Victoria

 

For us, Strategic Pricing was the most effective, systematic way to improve our margins.

– Joel Becker, President/CEO | TSC Distribution Group

 

Click here to read more testimonials.

Click here to read our customer case studies.

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.

Strategic Pricing Tools Unlock Significant Hidden Profits

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Are you interested to learn about the Strategic Pricing approach to increasing margins and the strategy that can lead to pricing excellence? Are you new on the journey to pricing excellence and need more information on how to leverage science-based tools to increase margins significantly?

SPA’s strategic pricing processes and analytics tools address these all too common issues and opportunities for increasing profitability:

  • Customer relationships focused on product/service value, not price
  • Identifying and capturing available margin premiums
  • Identifying price-sensitive products and services
  • Improving sales reps’ confidence in prices
  • Stopping undisciplined discounting
  • Tracking metrics for sales force accountability
  • Improving pricing consistency and fairness

SPA helps clients to quickly and efficiently build a more profitable pricing architecture. We work with our clients to segment their customer base and product/service sets. We profile the relative sensitivity of customers and products, to recommend pricing structures that focus discounting where it pays off in the market; and extract price premiums where there is less sensitivity.

We recommend price levels by product/service category and customer segment, as well as customer/product-specific price levels. We recommend list prices, discount/mark-up structures, and even customer contract pricing. We develop guidelines to help our clients manage and control exceptions to the architecture, and to identify pricing leakage points in the business. We coach our clients on the principles of strategic pricing and the process of mastering pricing and assist them in training sales reps.

The Hope Group is a distributor that is well on their way to achieving pricing excellence and is just one of hundreds of companies that are driving on average 2-4 margin point gains on affected revenue with minimal customer pushback by using strategic pricing processes and analytics tools from Strategic Pricing Associates (SPA). The benefits are staggering; and they are typically accomplished in less than 90 days.

“…pricing decisions were made randomly and spontaneously…there was no control, no discipline and no process. Now, with the SPA process in place, we increased our margin 19 percent and have doubled our pretax profits despite flat sales. These results are almost exclusively attributable to Strategic Pricing strategies.”

Carey Rhoten, CEO of the Hope Group

Click hereto read their testimonial about their journey to pricing excellence.

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 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.

SPA Client – New South Construction Supply – is Featured in Contractor Supply Magazine Cover Story

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The following is excerpted from the cover story article of the current issue of Contractor Supply Magazine which is titled “At New South Construction Supply, only the best is good enough” and was authored by Tom Hammel.

The piece highlights New South’s implementation of state-of-the-art business intelligence tools to improve margin performance. Jimmy Sobeck, their VP, Finance and Administration discusses the benefits they have received since embracing strategic pricing technology through implementing the SPA add-on to Epicor’s Prophet 21 software.

Contractor Supply Magazine, February/March 2014: New South Construction Supply
L-R, David Hodgin, Dexter Goodwin, Jim Sobeck and Jimmy Sobeck drive New South Construction Supply with Fortune 500 best practices and state-of-the-art business intelligence tools.

Business Intelligence

“I had studied computer science at Georgia Tech and got my degree in business finance,” Jim’s son, Jimmy, says. “New South was looking at putting in Epicor Prophet 21 and I had some experience with ERP, databases, programming and business so I came in and got involved with that implementation. I’ve been here since 2006 when we went live with the system.”

Today, Jimmy is New South’s vice president of finance and administration, but he still loves computers.

“I really enjoy providing information and giving our people the tools they need to make decisions,” Jimmy adds. “If we think we need to add more people or a new truck to a branch, we may do an analysis of how many transactions they run through the day or how many customer pick-ups versus deliveries they make per day or month versus the other branches. I can go into the database and create custom queries at will and provide information that the system might not have as a canned report. For just about any question that comes up, I can have hard data within 20 minutes.”

Jimmy also took the lead in New South’s implementation of strategic pricing.  

“We use Strategic Pricing Associates (SPA), which offers an add-on to Epicor’s Prophet 21,” Jimmy explains. “SPA analyses the vendors and types of products you sell to try to identify your core and non-core products. The idea is that you should be able to get a higher margin for your non-core items.”

That product data is put into a matrix that plots a distributor’s customers by market segment, for example, resellers, the government or regular contractors; and by size — small, medium, large or huge. Combined, these three factors create a “cube” of possible pricing combinations.

“They take all that information and build a complex pricing library for you that integrates with Prophet 21. It gives you a custom price for every customer and every item — based on your own historical data.”

“Why give a tiny customer the same price for a particular item that you do to somebody who buys 20 times more? SPA enables you to tighten up these variances and increase your margins. In the products we have added so far to the program, we have seen about a 2.5 percent margin increase year-over-year in our first year with SPA.”

Click here for the full article

Related Resources:

Click here for other SPA clients testimonials

Click here to learn about the Epicor-SPA Program

Click here to register for our March 26 Strategic Pricing Webcast for Plumbing, HVAC and PVF Distributors

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.