You can use the cover of vendor cost increases to gain 3 to 4 extra margin points on thousands of “incidental” items. These make up 70% of the items your customers buy. They spend less than $150 a year per item and buy each item only 1 or 2 times a year.
As a result your customers don’t watch their costs on these items…even in normal times. Over the past 25 years, our company, a strategic pricing and margin optimization firm, has helped our clients go through some serious ups and downs.
Whether it be 2008-09, the 2017 steel tariffs, COVID or the current tariff turmoil, having a plan and reacting faster than competition is more important than ever.
Our approach?:
Carefully, leverage this situation to enhance your profitability.
Key points:
- How to price competitive sales where competitors might get stupid
- What to do with fixed price contract pricing
- How to identify where customers won’t detect a slight margin increase…even with major tariff increases
- What to tell your sales team
- When you should price using average vs. replacement cost
Look beyond the dark cloud and use the silver lining to be competitive, raise margin and make 2026 one of your best years ever.
