Overview
Optimal pricing is the key to retaining customers while achieving profitability and stable growth. The strategies for optimal pricing consider a multitude of factors ranging from inventory and customer stratification to historical margin levels. With the Global Supply Chain Lab’s system-aided decision making methods, your company will have access to all of the data it needs to pursue profitable pricing.
The Pricing Optimization program really opened my eyes to a holistic approach to pricing strategy. This program is about more than just pricing — it makes you consider the cost to serve, which products to sell, and how to use your resources to build more core customers, serve them better, and be more profitable doing it.”
– Duane Van Dyke, Womack Machine Supply Co.
The Pricing Optimization conference provided an expert level of analysis and insight that every distributor needs but few have the time or resources to produce on their own. It was both timely and valuable.”
– Paul Sommerfeld, Director, Applications & Training, CSC, A Division of WESCO Distribution
Given the complexity of pricing, the Texas A&M Pricing Optimization program has gone a long way to specifying all the relevant elements and more importantly putting them in terms that can be quantified and managed.”
– Lawrence Mohr, Ph. D., Retired – Senior Vice President, F.W. Webb Company
Challenges
Lack of customer data
Poor inventory management
Incoherent pricing methods
Poor margins
Lack of ability to recognize and capitalize on readily available information
Solutions
Multi-criteria pricing model – item, customer, geography and time
Stratifying and moving customers to “profit zone”
A practical and effective “cost to serve” model
Rules for profitability (risk versus reward)
Easy to implement pricing framework
A best practice approach to pricing
Benefits
Sales Force Dashboard – information for better negotiation
How to leverage on existing and readily available system information?
Why and how to link inventory and customer classifications?
Structured and easy-to-understand approach
Optimal allocation of sales force resources
Real-world implementation benchmarks
