If you want to leverage pricing optimization best practices that are rooted in sound analytics, you must read this study!
The time has come for distributors to address their concerns about shrinking margins by upping their game on pricing decisions. If distributors keep doing more with less, they’ll soon find themselves doing everything with nothing! The issue of margin erosion will never end if distributors do not get creative—first with their pricing methods and second with their value proposition. Issues involving pricing methods are more critical to profitability and so should be tackled right away.
For many distributors, pricing decisions are completely left to individual salespeople to do in their own way. Allowing this kind of flexibility is a distributor’s weakness. Pricing is already quite complex, and inconsistency will only increase complexity and lead to chaos. This is the crux of the problem. The solution lies in “complexity management”—providing structure with fewer variables, and “consistency”—doing things the same way every time. This comprehensive study will help you achieve the right pricing solution for your business!