“The higher-tech we get, the more we lose high touch.” That’s one of three reasons why Al Bates, principal of Distribution Performance Project and dean of financial performance benchmarking, sees opportunities emerging for smaller independent distributors in the current business cycle. (Listen to the podcast with the player below). The challenge, he says of these […]
Category: Pricing
Why Price Visibility is Important for Distributors
I constantly see companies with great revenue management, pricing and go-to-market strategies that produce mediocre results. The problem? Price execution. A strategy is only as good as the execution. This is especially important for companies with complex route to market structures; going from distributors, wholesalers, retailers and other partners means everybody takes a piece of the […]
3 Practices that Prevent Healthy Pricing in Distribution — and How to Fix Them
With the economy in flux, pricing, volatility and cost are all major factors that impact distributor profitability. However, distributors can find ways to maintain profitability despite these challenges. Over the past 18 months, many companies focused on meeting customer demand and managing profitability through targeted cost savings. Pricing remained an afterthought as they focused on […]
The Pros and Cons of Cost-Based Pricing & Other Pricing Strategies
When it comes to pricing anything (B2B, B2C, product or service), there are three key strategies to achieve price optimization: 1. Cost-based or cost-plus pricing 2. Market-based pricing 3. Value-based pricing While there are claims of other strategies, most are offshoots or variations of these three. 1. What is a cost-based or cost-plus pricing strategy? […]
The Pros and Cons of Cost-Based Pricing & Other Pricing Strategies
When it comes to pricing anything (B2B, B2C, product or service), there are three key strategies to achieve price optimization: 1. Cost-based or cost-plus pricing 2. Market-based pricing 3. Value-based pricing While there are claims of other strategies, most are offshoots or variations of these three. 1. What is a cost-based or cost-plus pricing strategy? […]
