SPA Pricing Cube

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.

Webcast: SPA Customer Panel Discussion: Top Strategic Pricing Opportunities in Fluid Power

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During this 60-minute webcast Frank E. Hurtte Jr. will host a panel of SPA Fluid Power industry clients who will share their experiences and advice on how they SET optimal prices and GET improved profit margins through more effective price tools and strategies.

Fluid Power companies make millions of decisions each day and the goal is to maximize their goals and objectives with each decision. The decision, which is usually made more than any other, is how to price a product for each customer.

Often times the only variables which are included in making this pricing decision are – cost and a targeted margin percentage. Thus there is a huge opportunity to improve the efficiency and effectiveness of these pricing decisions.

Click here to learn more about what SPA has to offer Fluid Power companies and to download our “Top Strategic Pricing Opportunities in Fluid PowerWhite Paper.

 

Webcast Description

Tuesday, May 16, 2017 @ 2:00 PM Eastern

Click here to register

Attendees of this customer panel moderated by Distribution industry expert Frank E. Hurtte Jr. will learn how to:

  • Properly price products to capture the value of your services such as assembling components into finished goods.
  • Optimize prices in your manufacturer mandated price ranges product segments.
  • Price optimally as different customers have different cost-to-serve, you can stop your sales people needlessly giving away margin on some orders.

For example, the Strategic Pricing team at Livingston & shared with SPA an example of the power of implementing a strategic pricing tool has on controlling exception pricing follows:

“Prior to applying the SPA process, exception pricing – deviating from the system standard – was over 67% of our business and we only counted price drops greater than 10Prior to applying the SPA process, exception pricing – deviating from the system standard – was over 67% of our business and we only counted price drops greater than 10%.

This created issues with consistency and really complicated the job of our inside sales team. Today this practice has dropped to nearly zero. The system does not allow downward pricing adjustments, the inside sales team can only adjust upwards.”

Webinar panelists include Joe Strausbaugh (Kaman Fluid Power) and Todd Kesler (AirHydro Power). They will share how they introduced new tools and strategies in their businesses to drive margin improvement and grow their Fluid Power businesses profitably.

Join us for this informative webinar where you will learn about the top benefits of adopting a Strategic Pricing initiative in Fluid Power such as.

  • Creates volume lift opportunities
  • Fuels profitable growth
  • Identify margin lift opportunities
  • Adapt to the competitive threats
  • Leverages your market strengths and value differentiators

 

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.

 

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.

Webcast: SPA Customer Panel Discussion: Driving Profit Improvement Through Better Pricing and Negotiation Strategies

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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.

Program Description

Thursday, April 27, 2017 @ 2:00 PM Eastern

Click here to register

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.

 

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.

Learn How 100s of Manufacturers and Distributors Have Used the SPA Strategic Pricing Process and Technology to Improve Margins 2-4%

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Reducing your operating expenses, increasing your sales volume, and reducing your cost of goods sold all deliver bottom line profit. But no element of your business mix can deliver more impact to your bottom line than achieving strategic pricing excellence.

We work with your team to think strategically about pricing; segment your markets; analyze your invoice data; and rebuild your pricing structures to maximize your profitability. We help you build the guidelines and process metrics to ensure effective execution. We help you train your sales force in the practical and cultural dimensions of this process.

SPA provides recommended pricing architectures and related process training to complex companies. SPA helps clients to quickly and efficiently build a more profitable pricing architecture in their enterprise system, without complex and costly integration efforts. The benefits are staggering; and they are typically accomplished in less than 90 days.

We work with our clients to segment their customer base and product/service sets. They give us a slice of invoice data that describes their actual pricing performance—who paid how much for which product/service and how many they bought—and we apply our proprietary analytical models to these data to recommend what their pricing architecture should look like. 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.

Watch our informative videos about the SPA difference. You will learn the keys to achieving strategic pricing excellence and hear about the work we have done to improve margins by 2-4% for some of the biggest names in manufacturing and distribution.

Our clients comprise the largest Fortune 500 industrial companies, such as ExxonMobil, GE, Parker Hannifin, Rockwell, Mitsubishi/Caterpillar, Pella and American Standard. We also serve mid-size manufacturers.

We serve the world’s largest distributors, such as Grainger, Wesco, Industrial Distribution Group, and ThermoFisher Scientific; Caterpillar dealers; as well as hundreds of mid-size and small distributors and equipment dealers. Our distribution client base spans all major segments: industrial, electrical, building products, medical, fasteners, paper & packaging, plumbing/HVAC, chemicals, food.

Our team would be honored to help you on your journey to achieving strategic pricing excellence as well.

 

Learn More

Click here for more information about capturing pricing opportunities and improving your bottom line using our proven processes and tools.

Click here for a quick questionnaire to determine the impact Strategic Pricing can have on your company’s bottom line.

 

SPA Events

Click here to learn about our complimentary Strategic Pricing Seminar in Las Vegas, NV on October 16 where you will hear from our clients about their fast payback and significant ROI.

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 Pricing Cube™ – The Architecture of Optimized Pricing

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The SPA Pricing Cube™ combines your understanding of markets with SPA’s powerful analytics, to identify the optimal pricing architecture for your business, focusing discounts on the most price-sensitive products and customers, where it will have the biggest payoff in competitive positioning; and extracting small premiums on less-sensitive products and customers.

The SPA Pricing Cube™ takes the guesswork out of optimized pricing in complex environments, allowing your sales force to focus on serving the customer and driving value. Our process provides for flexibility and discipline in pricing, to create a balance that works in your business.

Many complex companies have missed fundamental opportunities to manage pricing in two key dimensions.  Often many customers are getting lower prices than they should and low-sensitivity products are not generating price premiums. The combination is typically worth 2 to 4 margin points.

The following describes what the SPA Pricing Cube™ can do for your company.

  • Provides a foundation for setting pricing standards in complex environments
  • Strategic Pricing Standards are structured around market segments, customer sizes, and product/service sensitivity
  • Provides a foundation for organizing transaction data for purposes of comparative indexing analysis
  • Analyzes client invoice data looking at customer’s product baskets, order patterns by product, and relative spend by product
  • Analyzes key predictors of price sensitivity including order frequencies, volumes, and repeatability
  • Assigns every customer to a market segment and customer size and/or sensitivity level; every product/service is assigned to a product/service family
  • Profiles every product/service for price sensitivity, at the segment level or at the customer-specific basket level
  • Analyzes distribution of many properties by customer and across groups of customers
  • Result: recommended price premium map to SKUs and vendors by individual customer or customer group

The SPA Pricing Cube™, our proven pricing analytics tool, is available in Silver, Gold, and Platinum levels to provide the right tool to match a company’s current pricing process sophistication and desired impact; we recommend starting with Silver. The following describes the difference in the various levels.

Silver

  • Architecture: Basic
  • Data Services: Basic Sensitivity Ratings
  • Pricing Structure: Basic Type-Size Values; and Constant Slopes and Premiums
  • Impact: Good – Estimated 1.0x (2% Gain)

Gold

  • Architecture: Intermediate
  • Data Services: Dynamic Sensitivity Ratings (more C/D revenue)
  • Pricing Structure: Differential Type-Size Values; and Dynamic Slopes and Premiums
  • Impact: Better – Estimated 1.5x (3% Gain)

Platinum

  • Architecture: Advanced
  • Data Services: Dynamic Sensitivity Ratings, Type- and Customer-Specific
  • Pricing Structure: Dynamic Type-Size Values and Dynamic Slopes and Premiums; Customer-Specific Sensitivity, Behavioral Scoring and Cost-to-Serve
  • Impact: Highest – Estimated 2.0x (4% Gain)

Click here for more information about capturing pricing opportunities and improving your bottom line using our proven processes and tools.

Click here for a quick questionnaire to determine the impact Strategic Pricing can have on your company’s bottom line.

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.