Did you know The French Laundry- roundly recognized as the best restaurant in the United States- has 67 one-star reviews on Google?
No matter how good you are as an organization, if you’re large or well-known enough, it’s impossible to satisfy every customer.
In distribution we’ve seen an influx of non-strategic pricing decisions, often done in the name of satisfying the customer, that sacrifice margin on items where it’s near impossible to make a net profit to start with. This is a margin race to the bottom and belies the true mission of your business:
You don’t just sell stuff.
You’re a bank…a delivery service…an easily accessible warehouse…and you’re customers genuinely like you and your people. That is worth something.
It’s worth a lot.
At Profit2, in our two decades of helping distributors optimize pricing, we and our clients have experienced four major economic shifts. The distributors who understand margin management and leverage their ERP pricing system are invariably the ones who come out of the economic storm in the best position.
Join us for an informative webinar on Tuesday, August 9th at 2PM CDT. In under 30 minutes you’ll learn 4 ways to increase margin 2 Points on total sales inside 60 days.
- Review & adjust customer-specific pricing…see where you’re overpriced. Find out where you’re underpriced. Know the right price to charge for each sale.
- Maintain your rebates and allowances- suppliers are already cutting back. Develop tools to keep your share.
- Make sure customers are profitable. Factor in cost to serve and profitability into your pricing decisions. Focus on small customers, on-stocks and other incidentals
- Target the bottom 30% of sales. Top firms make 10 to 15 plus points more than their average on their least price sensitive sales.
Oh, and we will show you how to execute a pricing program discreetly so your customers won’t notice and without expensive software that’s impossible to implement. Learn how your colleagues and competitors have partnered with Profit2 to increase their total margin over 1 point in their first 60 days.