Non-Price Benefits of a Pricing Process

You see us write a lot about pricing and pricing strategies. For most distributors, the obvious advantage of a disciplined pricing process is the corresponding increase to the bottom line. Research conducted by David Bauders and Strategic Pricing Associates of Cleveland, Ohio indicates that most distributors see a margin bump of more than two points. At the same time, examination of the Profit Reports generated by a number of distributor associations indicates the bottom line advantage enjoyed by the āupper quartileā members ā those who outperformed 75% of their colleagues - comes from more than ājustā a margin advantage. We discovered these upper-end players were at the vanguard of distributor organizations using Strategic Pricing Associates data driven pricing process. We wanted to explore two points: What non-pricing benefits/advantages have they discovered as they implemented the SPA process? How has this migrated into the overall company culture? We spoke with Ja...