Client Testimonial

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.

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 > Our Approach

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Strategic Pricing Associates’ approach to strategic pricing projects is to teach you how to leverage your data and manage your pricing effectively to dramatically increase the value of your company through implementing a proven strategy that includes pricing excellence best practices.

SPA - strategy management and processThe majority of companies fail to take the initiative to plan the management of their pricing. Most make their pricing decisions based on their competition and their customers’ reactions. Often, they lose their ability to control pricing and they undermine their business through chaotic discounting, rebating and by offering “bargains” that actually educate their customers to want more for lower prices.

Strategic Pricing Associates helps you build pricing integrity by teaching you to be proactive and manage the pricing in your markets.

Our process is data-driven. We will work with you to segment your customer base, analyze your invoice data, and identify opportunities to build a pricing architecture, in your existing enterprise system, that reduces wasteful discounting and captures price premiums from less sensitive customers and products, services or rentals. We measure the pricing performance of customers, products, sales reps, branches, and other management dimensions. Your invoice data contain a wealth of insights into how to increase your return on investment. We have the analytical and process expertise to help you increase your profit quickly.

Our process is efficient. Working with your management team, over three months and two web-based training sessions we can help you capture increased profits of two or more margin points. Your team will gain confidence and knowledge to maximize the profitability of your business.

Epicor Customers—Learn about the new add-on Strategic Pricing Module and related data services to fast track dramatic margin improvements.

Learn more about SPA’s strategy, process and management.

Click here to read our customer’s testimonials.

Click here to read our customer case studies.

SPA Events

Seminars are scheduled throughout the year, in cities in North American, South American and Europe. They are generally one day in length, and are scheduled on Fridays, allowing you to return home or enjoy an extended weekend. Learn more about dates, locations and topics.

Click to view a recent SPA Seminar Agenda

Click to read a recap of a recent SPA Strategy Seminar

Webcasts are focused, one-hour sessions that explore specific areas of Strategic Pricing.

These webcasts draw on SPA’s experience working with hundreds of companies to drive 2-4 margin point improvements on affected revenue with minimal customer pushback.

Click on a link below for details and to register for an upcoming webcast.

Tuesday, October 14, 2014 at 2:00pm EST

Tuesday, November 18, 2014 at 2:00pm EST

Tuesday, December 9, 2014 at 2:00pm EST

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.