It’s All About the Basics
There’s an old baseball story about a coach. His pitcher was struggling. Pitch after pitch was off the mark. The bases were now loaded.
What would you do for 1 more point of margin?
Just one more point of margin can transform your business. One point can increase most distributors earnings by 20+%!
Back Up Your Sales People
When launching a new pricing initiative, such as focusing on incidentals, you may discover that coming up with the numbers is only half the battle. Getting your sales people to use the new pricing structure can be even [...]
For 10 years I sat in your chair and waited for higher margins
I could tell from benchmark studies that my company lagged the industry. The question was never should we do something, it was always what to do given the challenges. You know the excuses we made... [...]
Optimizing Distributor Margin – Incidentals
There is a strong correlation between how you price low-volume, infrequently purchased incidental items and your overall profitability. Although the definition of “incidental sale” varies by industry, for the purpose of our study we defined [...]
Gain 5 to 7 Points on 30% of Your Sales
Increase earnings by focusing on “incidentals". The pricing experts at Profit2 help you identify infrequent, low volume sales where your margins are too close to your average.
Correlation Between Volume and Price
Are You Leaving Money on the Table? This graph illustrates the relationship between price and annual item volume for one item.
Overcome Fear to Increase Margin
Your sales people live in fear. Here’s their nightmare scenario…
Opportunity Indicators: Compression
Pricing is often “compressed” around a company’s average margin. There’s too little difference in margin rate between high and low volume orders, big and small customer sales and price-sensitive vs. incidental items. When pricing is [...]
How to build a Margin-Enhancing Infrastructure: Focus on Sales Behavior
Only about half of intended price increases are actually captured* System prices are lowered by the sales person over 50% of the time Only 35% of surveyed companies* have sufficient pricing power to achieve the [...]