How to Turn a Common Pricing Problem into Newfound Profits

During the recession, Mahoning Supply, an imaginary industrial distributor with $50 million in annual sales, faced an all-too-familiar problem. Year-to-year sales were off, and the company was in danger of breaching its bank loan covenants. The bank was worried that projected cash flow would barely cover the required payments. Management at this imaginary, but not atypical, distributor made two obvious …

Make Order Out of Pricing Chaos

The pricing world for distributor sales representatives is chaotic. They must make most pricing decisions on their own, under intense time pressure, and with little or no market pricing information. Whatever competitive pricing information they do have is provided by their customers. The reps’ pricing decisions depend on the product cost and hunches about competition. Sometimes the reps need pricing …

Pricing Disruption in Distribution

Pricing Disruption in Distribution | What Distributors Need to Know

Pricing disruption in distribution is at an all-time high. You have to defend yourself, but be sure you’re defending yourself with the right strategies. For example, would your customers continue to order from you if they had no one available to help them? If you didn’t have the products they need? According to retail expert Guru Haraharan, that’s just what …

How Will Grainger’s Pricing Struggle Affect your Business?

Distributors Take Note No distributor would deny that Grainger is a titan in the wholesale distribution world. But does Grainger’s pricing struggle mean that this Chicago-based behemoth is losing its magic touch? All eyes were on Grainger in April when the iconic company’s leaders held their analyst conference call about first quarter results: sales, margins, and profits were disappointing. The defensive …

Market-Driven Pricing

Why the Right Price is a Market-Driven Price

Jim Hlavacek, a fellow (and former) marketing professor at Case Western Reserve School of Management, is one of the most brilliant people with whom I have ever worked,  Jim also taught at Wake Forest. He resigned from teaching because couldn’t afford to pass up the incredible fees he earns consulting for 3M, Unilever, J&J, Parker Hannifin, etc. Jim’s been a …