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How Mix Affects Profit Margins

You sell many different products to many different customers, and on any given day, what you sell to whom changes – that’s what we mean by mix. Every product and customer can have a different profit margin, so even if you have the same top-line sales from one month to the next, your profitability can vary considerably. You need to understand your mix.

What's Your Price Quote Turnaround?

When customers call you for a quote, how long does it take you to get one back to them? If your answer involves the words ‘hours’ or ‘days’, chances are you’re losing business due to lengthy response times.

Customers appreciate having market-relevant pricing available immediately when requested, especially if they’ve been shopping around. Businesses can benefit tremendously – in terms of operational efficiencies, customer satisfaction, win/loss rates, and profitability – by implementing a quoting process that gives customer service representatives the opportunity to close the sale before hanging up the phone. But how do you make that happen?

Pricing Challenge: Actual vs. Plan

 

Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.

Now that we’re about halfway through 2019, let’s talk about the plan you set for the year. How have you performed thus far relative to your plan?

Pricing Challenge: Segmentation

Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.

Let's think about target price – not your list price, but the price you want your customer to ultimately end up paying after accounting for discounts, surcharges, and other factors (like tariffs!) – and how to optimize it through differentiation and segmentation.

Pricing Challenge: Payment Terms

Welcome back to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each article covers a common pricing challenge faced by businesses and provide some tips to help improve your profitability.

Building on our Price Leaks’ article, let’s talk about payment terms. You want to get paid promptly, so you have policies and incentives in place to encourage that. But have you taken a moment to consider whether your payment terms are the right fit for your business?

Pricing Challenge: Price Leak Challenges

Welcome to INSIGHT2PROFIT’s 2019 Pricing Challenge! Each month we’ll discuss a common pricing challenge faced by businesses and provide some tips to help improve your profitability.

First up, let’s talk about price leak challenges. You’ve set your product pricing, but after considerations like discounts, freight costs, program allowances, rebates and payment terms, how much of that price actually reaches your bottom line? Today we’ll look at how just one factor – expedited orders – can dip into your profit margin and how you can quickly address that challenge.

How to Tackle Trade Tariffs

Following our recent 3 Steps to Navigating Tariffs post, the PricingBrew Journal interviewed one of our own, Sean Arnold, as part of their Expert Interview series. In the interview, Sean shares critical insights for balancing speed and smarts when dealing with tariffs...

3 Steps to Navigating Tariffs

The measurable impact of import tariffs is beginning to ripple across the manufacturing and distribution landscape and financial markets. Alcoa dropped 13.3% to a seven-month low earlier this week — an indication of how aluminum tariffs are hurting, not helping, U.S. based aluminum manufacturers. Regardless of which industry you are in, chances are you will be impacted.

Don’t Let Freight Hikes Drive Down Profit Margins | Manage Freight Costs

U.S. shipping costs have soared to unprecedented heights in 2018. While this indicator of a strong economy is good news for manufacturers on many levels, it comes at a price. In this case, approximately $1.85 per trucking mile — a 68% increase since 2010. What fuels this trend and how to manage freight costs?

Import Tariffs are Coming, Are You Ready?

With the import tariffs announcement, there is concern of inflation in sectors that use steel and aluminum. In addition, several of our clients have seen cost increases in other commodities. Talk of inflation typically translates into panic. Here’s how we suggest you prepare for what’s coming...