“Control your own destiny! Control your own destiny!”
– Stephen Curry

None of us seem to control much these days. Yet there are 5 vital profit actions you can take now to make sure you earn more in the days ahead.

You can control…

  • How you react to vendor cost increases
  • Non-strategic price concessions
  • The pricing of high cost-to-serve customers and slow payers
  • Losing margin with out of date customer specific pricing
  • If you make as much as your competitors on incidental sales

Vendor Increases… each vendor increase (and there look to be a lot coming) is a chance to gain or lose margin. Strictly limit contract pricing set up at a fixed or net price. And now is the time to have a plan ready to help you gain a little more margin under the cover of supplier increases. See how others increase margin on vendor increases based on the item and customer. Gain at least ½ point more per year.

Price Concessions… Your salespeople are scared. Don’t let their fear put a dent in your profits. 76% of price concessions aren’t asked for by the customer or necessary. With Profit2, you can gain the insights you need to have more control over quotes, new contracts and price overrides.

Cost to Serve… many customers aren’t profitable. If your customer pricing types don’t include cost to serve or how they pay their bills; it’s harming your profits. We can help you include these key factors in your pricing decisions and build net profits.

Customer Specific Pricing… Most distributors have thousands of pricing records that should be deleted or increased. Often, they were set up years before with expectations no one recalls.  Profit2 will enable you to conduct a systematic review of your pricing and find more GP$ for the back half of 2020.

Incidental Sales… the biggest price difference among distributors is in how they price the bottom 33% of their sales. If you’re not making 12 to 15 points more on the bottom third, you are at a disadvantage. On average, these items are purchased by the customer a couple times a year and the spend is less than $500.

Safely increase margin by 4 to 5 points on 33% of your sales inside of 8 weeks. Think what that would mean for the back half of 2020!

Now Is the Time to Seize Control

Let Profit2 show you how to increase margin. Take one action now and talk to us. See how companies just like yours are making sure they end 2020 stronger than ever.

Enter your sales details into our ROI Calculator Form to see what your potential ROI could be. If you like what you see, you’ll be able to easily schedule a call with one of our partners to find out more information and we’ll even email you a budgetary fee schedule if you so choose.

Published On: May 21st, 2020 / Categories: Articles, Featured, Industry Leadership /