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...
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.
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...
It’s a common knee-jerk reaction for salespeople to focus on increasing volume by offering discounts on every sale – even if it means sacrificing margins. One way to mitigate the risk of excessive discounting is to establish a pricing system that balances volume incentives with well-defined boundaries that sales staff must operate within.
Ideally, in an effective pricing system, the framework should provide guidance for as many as 80 percent of sales. This guidance should consider a comprehensive range of factors, including the type and size of the customer, the market and the nature of the opportunity. The direction should be clear and unequivocal, providing sales staff with “guardrails” that establish minimum and maximum prices or margins. Sales staff can bounce between these guardrails as appropriate, but they should not be allowed to go above or below the established boundaries.
You’ve most likely seen the commercials asking consumers, “What’s in your wallet?” Yet, from a business perspective, finding out what you have in your wallet isn’t nearly as important as finding out what you’re missing. That missing link is known as wallet share; and understanding what’s NOT in your wallet can lead to tremendous opportunities in terms of your business’ ability to generate profitable growth.
As mentioned in a recent blog post, getting your organization ready for raw material inflation includes preparing your sales team for price increase conversations with customers. It’s a skill that needs practice and developing backup strategies in case of pushback is a key component to your sales training plan.
Need help? You can use our Negotiation Tactics Infographic as a starting point.
Getting to the "right" price for your customer can be difficult and time consuming. How do you know you are pricing correctly? How do you create consistency across your organization? And more importantly, how do you maximize your profitability without losing business?
Navigating your way through these challenges usually requires taking a step back to level-set your current processes. So, where do you start?
How good are your BI tools at explaining your data?
A BI tool might report you lost half a point of margin last month or gained two points in revenue, but what’s driving those changes often remains a mystery.
If you’re ready to unleash the power of your data, a pricing business application like Profit Builder can be the solution you need.
Check out the video below to learn more about how Profit Builder works:
When there’s a pricing problem at your company, you know it. Still, you struggle to pinpoint what, exactly, the problem is—and how to fix it.
One critical step towards gaining visibility into your pricing issues is something we like to call “price-down reporting.” In this article, we’ll talk about what that term means, and how to use it to your advantage.
In many cases, we see sales teams compensated based on the volume they bring in without much focus on pricing. Contrastly, pricing teams are compensated based on improved margins. This creates a natural tension.
So how can your organization improve alignment between pricing and sales teams to ensure business goals are met? Lots of our clients have had similar concerns, so here, we answer frequently asked questions to bring your pricing and sales teams together working toward improved profits and overall success.