I was speaking with one of our distribution customers a few months ago. I asked if they’d seen an increase in required claim flow to their vendors (manufacturers) who had an existing relationship with their customers, and, if so, how had they handled it? The response was an overwhelming “yes,” and “we’re not sure.” This…
Summary Today’s distributors face ever-present challenges, marked by an extremely competitive market place. This text discusses their pricing challenges, and provides a view into industry best practices to overcome the obstacles. Introduction Legendary dynasties like Germany’s Fugger family built their fortunes in trade. They organised themselves in guilds like the “Hanse” of Northern Germany, whose…
Procurement organizations see supplier pricing mistakes every day. Understanding these will help you better understand what you need to do to maintain price when procurement is involved in the purchase decision. Mistake 1: Not understanding the culture, needs and incentives of the procurement organization. Price is important, but procurement organizations are measured on other factors…
The service parts industry – specifically automotive, heavy equipment, aircraft and aerospace parts manufacturing and distribution – generates trillions of dollars in annual revenues. Given the fact that many of the industry’s manufacturers and distributors struggle with pricing, it’s clear that these revenues, while impressive, do not come close to capturing market potential. Why are…
Now more than ever, getting the best price from your suppliers is a vital skill. It requires clear knowledge of the markets, good negotiating skills and shrewdness about supplier strengths and weaknesses. Sometimes mistakes your suppliers make can work to your advantage. Here are ten supplier errors that can put dollars in your pocket. Mistake…
I have worked with some talented salespeople over the years and learned a great deal about being a good steward of our company to our customers. As a sales and marketing leader at PROS, I often have the privilege of meeting 1-on-1 with each new person we hire into our department. When I meet new…
On May 4th the Canadian government officially stopped production of the penny, ironically it is not of sufficient value to justify its price. Indeed, the penny used to have 20 times more purchasing power than it had when it was first produced on January 2, 1908. However, “making cents hasn’t made sense for a long…
For many organizations, the price-change process is a time-consuming, unpleasant and imperfect process that everyone knows must be done, and no one wants to tackle. When I was a pricing analyst many years ago, I remember how our annual price-change process felt like the TV show Wipeout® – a never-ending series of obstacles from which…
Amazon is one of the biggest companies in the world when it comes to selling goods over the Internet. While the company has made its mark concentrating on the consumer market, selling music, books and electronic items, its latest shot across the bow is an interesting move. In April, Amazon announced its intent to enter…
In pricing discussions, a topic that often surfaces is one that centers on using competitive price data. In service parts, this subject is especially prevalent because of the available interchanges that enable you to compare a competitor’s part to one sold by your company. The concept seems simple enough: By knowing what the competition charges…
Steve Sassi says:
A great way to understand the value you're delivering to your...
Jacqueline Davis says:
Hi Siva,
Thanks! I couldn’t agree with you more on the...
Jacqueline Davis says:
Hi Rikhath,
The question of why your company needs a pricing team...
Siva Ram Yellapragada says:
Simply awesome !!
We have a strong pricing team in our global...
Rikhath says:
Also in enterprise products world do you think Product operations would...
