Latest Event Updates

Event Recap: SPA Strategy Seminar in Ft. Lauderdale, FL February 7, 2014

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The following are highlights of an article authored by Frank E. Hurtte Jr. who has 28 years of distribution industry experience and a lifetime in sales. He was a presenter at the last SPA Strategy Seminar and his recap includes a number of critical points made by presenters and attendees who openly shared a number of timely and thought provoking ideas.

Highlights from Some of the Presentations by Distribution Experts

Tom Gale (Modern Distribution Management)

  • 63% of distributors has some form of e-commerce offering
  • 70+% of distributors plan to invest further in e-commerce in 2014
  • Only 21% see on-line only players as their biggest competitive threat
  • By the end of 2014 nearly half of all distributors will have a “mobile app”
  • High performing distributors have a growing edge in the analytics of their business

Jonathan Bein (Real Results Marketing)

“The Lake Wobegon Effect …where all the children are above average”

Most companies tend to overestimate their strengths in the market. According to a survey, 90% of distributors believe they offer more value than their competitors. Only a very small percentage of distributors can elaborate on their value. Most say we provide better “customer service.”

Selection of Comments from Panel Discussions of Top Distributor Leaders

Comment from a distributor who had added important gross margin increases via SPA:

“We had implemented an internal pricing process several years ago. We made a slight gain in our overall gross margin but within six months, most of the gains had slipped away. What we lacked was the deep dive metrics required to hold our salespeople accountable.”

Comment from a distributor talking about sales process:

“Before we started setting measures of success and managing against them, our sales team was like a day in the Wild West. Every salesperson ran their territory like the Lone Ranger, often without regard to how this impacted the profitability of the company. Since implementing a system with measures that can be pushed down to the sales territory level, things have started to change for the better.”

Comment from a distributor who had implemented the SPA plan about 18 months prior:

“SPA is the absolute best investment in distribution. We paid for the whole system in less than two months and the results continue to grow.”

SPA’s President David Bauder’s key business observations

David believes now is the Time to Focus on Execution in our business. He laid out the following points. It is difficult to disagree with any of them.

With the current prospects for economic recovery, a focus on execution is crucial.

    • Accelerate your prioritization of high value-add initiatives
    • Cancel marginal projects and terminate poor performers

Frank Hurtte’s Final Thoughts

“As a senior advisor to over 50 distribution companies, I find it hard to believe that anyone would put off exploring a plan that can deliver 500% return on investment. The SPA Strategy Seminars are eye opening and always give me pause. Further, the sessions are free to distribution leadership and conducted in a way that encourages networking. If you haven’t been to one, I encourage you to get information on SPA ‘s next Strategy Seminar.”

Click here to read the full article

Upcoming SPA Strategic Pricing Conference Details

Mandalay Bay, Las Vegas, NV
3950 Las Vegas Blvd South
Las Vegas, NV 89119
Tel: (877) 632-7800

Agenda

Click here for the complete conference and workshop agenda.

Registration

To register for one of our upcoming events visit this page or contact Sheri Morford at Sheri.Morford@strategicpricing.com or call (216)470-9748.

Other SPA Events

Can’t make it to Vegas this year, no problem, you can 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.

Hear from a SPA Client on our May 7th Strategic Pricing Overview Webcast

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During this 60-minute webcast, you will not only learn about the Strategic Pricing approach to increasing margins but you will also listen to a SPA client share their experiences and advice. There is no cost to attend, but you will gain a wealth of practical knowledge!

Program Description

Join us Wednesday, May 7, 2014 at 2:00pm EST as we discuss the Strategic Pricing margin improvement opportunity and the strategy that can lead to pricing excellence. A SPA client will participate in this webinar to share their experience and results.

Attendees of the webcast will learn:

  • Winning approaches to selling on value, not price
  • The margin improvement opportunity
  • The challenges to improving pricing performance
  • Metrics for sales force accountability
  • Lessons learned by an SPA client

This webcast draws on SPA’s experience working with hundreds companies to drive pricing gains of 2-4 margin points on affected revenue with minimal customer pushback.

Click here to Register

Other SPA Events

Join us in Las Vegas Apr 30 – May 1 for our SPA Strategy Seminar at the Mandalay Bay or you can click here for other SPA Seminar dates and locations.

Click here other SPA webcast dates and times. Sign in or click here to register on our website to view our library of past webinars which cover a variety of strategic pricing topics.

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.

Case Study: AH Harris

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Read how AH Harris adopted a scientific approach to pricing which is still driving continued gross margin improvements.
“We improved the overall accuracy and consistency of pricing across the board. Our people don’t fall victim to the ‘last price paid’ trap anymore and customers are always provided with a fair and well thought out price.” As Mr. Stanek says, “This is a sustainable gain.”

Building Supplies with an Entrepreneurial Bent

Recently, we had the opportunity to speak with Jonathan Stanek, CFO of AH Harris. Jonathan exemplifies the new breed of strategically-focused CFOs. Demonstrating the actions of this new generation of CFOs, Jonathan provides not only financial staff services, but also tactical and strategic direction based on the financial and market conditions.

According to Mr. Stanek, “One of the main challenges of my job is to refocus the company’s cash on available opportunities. This includes traditional things like the careful maintenance of Accounts Receivable, management of inventory, management of rental assets, and management of financial risks but extends into streamlining other parts of the business. Because they represent a significant portion of the distribution business, freight costs were one of the priorities for command and control.”

Early in 2010, AH Harris began a plan for segmenting and justifying customer investment as part of their freight analysis. It was during this time an AH Harris Regional Manager brought Strategic Pricing Associates to Mr. Stanek’s attention.

Again quoting Mr. Stanek, “We had begun the process in house, but upon learning of SPA, decided we could drive results quicker using an outside firm. We did due diligence and explored several other companies in the pricing industry. The selection was based around three criteria: speed of implementation, completeness of the offering and feedback from current clients. And, Strategic Pricing Associates had some very credible clients who raved about the results. As a matter of fact, many openly shared the results with us.”

Finally, we asked Mr. Stanek to share his experience with our readers by laying out lessons learned. Here are his thoughts:

  • “Given the time frame required to make a scientific process really work, don’t worry about perfection. Get it out there and moving forward quickly.
  • It’s important to keep the momentum moving forward by continuing to focus on the process during the months following the initial rollout. For AH Harris, it’s been nearly four years and we are still talking up the process.
  • Expect a natural tension from employees. Different departments are incented to maximize different aspects of the business. This is a good thing.”

Click here to read the complete AH Harris case study.

Click here to learn about SPA’s approach to implementing strategic pricing.

Click here for SPA Seminar dates and locations.

Click here for upcoming SPA webcasts where you can here directly from SPA clients.

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.

SPA Pricing Strategy Seminar at the Mandalay Bay in Las Vegas, NV

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The seminar addresses key topics that are particularly relevant in a recovering economy. This year’s conference brings together an outstanding group of industry experts to offer strategies on driving shareholder value.

Program Description

Join us 30Apr – 1May at the Mandalay Bay in Las Vegas, NV for our next SPA Pricing Strategy Seminar. This big-picture seminar is focused on strategic topics of importance to the owners, CEOs, CFOs, and general managers of distribution and manufacturing 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.

Session Dates and Times

  • April 30, 2014 | Strategic Pricing Training Workshop – 2:00-5:00 pm
  • April 30, 2014 | Seminar Reception and Dinner – 5:00 pm
  • May 1, 2014 | Strategic Pricing Seminar Presentations – 8:00 am to 4:00 pm

Executive/Pricing Leader Training in Strategic Pricing Workshop Description

David S. Bauders, President, SPA, will conduct a training workshop covering the pricing leader’s mastery of essential analytical, process, metrics, and cultural issues surrounding Strategic Pricing. Every pricing leader needs to master a core set of disciplines and capabilities to maximize price improvement and sustainability. This workshop will evaluate each company’s level of pricing mastery, identify gaps, and provide valuable strategies for maximizing execution.

SPA will discuss the change-management, organizational, cultural, and process dimensions that usually mean the difference between good and great performers in the SPA program. A panel of experienced owners and pricing leaders will discuss their lessons learned along this journey.

Best Practices Panel Discussion Topics | David S. Bauders, President, SPA and Executives of Several SPA Clients

  • Documenting and Measuring Your Pricing Process
  • The Cultural Dimension:  Selling on Value, Not Price
  • The People Dimension:  Staffing for Success
  • Overcoming Organizational Obstacles: Culture, Metrics, Incentives
  • The Pricing Methods Mix and The Metrics that Matter

Seminar Presentation Topics and Speakers

  • Driving Change that Matters in a Recovery Economy | David Bauders, President, SPA
  • Market Trends in the Current Economic Environment | Tom Gale, Publisher, Modern Distribution Management
  • Maximizing Enterprise Value: Capital Markets Panel | Jim Hill, Managing Director, Benesch; Roy Burns, Director, TA Associates; Brian McDermott, Managing Director, Raymond James; Devraj Roy, Principal, Irving Place Partners; and distribution principals
  • Strategic Pricing in a Rebound Economy | David Bauders, President, SPA; and distribution principals
  • The SPA Pricing Cube Reporting Tool | Dolores Bauders, Chief Operating Officer, SPA
  • Change Management and Sales Culture:  Execution on the Drivers that Matter | David Bauders, President, SPA and Frank Hurtte, Founding Partner, River Heights Consulting and Distribution Principals
  • Sharpening Your Value Proposition | Jonathan Bein, Managing Partner, Real Results Marketing
  • Seminar Summary:  Execution Excellence in a Rebound Economy | David Bauders, President, SPA

Event Location

Mandalay Bay, Las Vegas, NV
3950 Las Vegas Blvd South
Las Vegas, NV 89119
Tel:  (877) 632-7800

Registration

To register for this free event, please contact Sheri Morford at Sheri.Morford@strategicpricing.com or call (216)470-9748.

Agenda

Click here to read a pdf of the complete seminar and workshop agenda.

Other SPA Events

Can’t make it to Las Vegas this year, no problem, you can 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.

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.

Join us March 12th for our Strategic Pricing Overview and Client Interview Webcast

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During this 60-minute webcast, you will not only learn about the Strategic Pricing approach to increasing margins but you will also listen to an SPA client share their experiences and advice. There is no cost to attend, but you will gain a wealth of practical knowledge!

Program Description

Join us Wednesday, March 12, 2014 at 2:00pm EST as we discuss the Strategic Pricing margin improvement opportunity and the strategy that can lead to pricing excellence. A SPA client will participate in this webinar to share their experience and results.

Attendees of the webcast will learn:

  • Winning approaches to selling on value, not price
  • The margin improvement opportunity
  • The challenges to improving pricing performance
  • Metrics for sales force accountability
  • Lessons learned by an SPA client

This webcast draws on SPA’s experience working with hundreds companies to drive pricing gains of 2-4 margin points on affected revenue with minimal customer pushback.

Click here to Register

Click here for other upcoming SPA webcasts

SPA Launches the “Strategic Pricing Pays” Blog

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We are happy to announce the launch of our “Strategic Pricing Pays” blog. We will use this blog to share:

  • Strategic Pricing and Pricing Analytics best-practices,
  • Information about upcoming SPA Seminars and Webcasts,
  • SPA corporate announcements, press mentions, and
  • Featured case studies and presentations.

We are proud to have been serving a diverse set of clients for 20+ years and look forward to sharing our insights with our readers.

We encourage comments and welcome you to contact us with suggestions for Strategic Pricing and Pricing Analytics related topics you would like to see discussed on this blog.

Use the subscription form in the right sidebar to have the latest blog posts sent to your email. You can also register to receive our newsletters here.

David Bauders,

Founder and President, Strategic Pricing Associates, Inc.

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.