In no other part of the value chain does pricing so significantly affect profits as it does in distribution. A price improvement of 0.5% has the potential to boost or destroy a distributor’s profits. When you factor in the distributors’ tendency toward high revenues and thin margins, it is clear that pricing is the number one profit lever. At the same time, higher price transparency, growing number of buying groups, tenders and savvier buyers are putting wholesalers under increasing pressure.
A pricing program roadmap is key to building pricing capabilities and implementing margin improvements across the organization. Download our whitepaper for a practical framework to assess pricing maturity and step-by-step capability improvement.