In Distribution, Better Segments Lead to Higher Margins

In Distribution, Better Segments Lead to Higher Margins Optimized pricing is one of the best—and often untapped—sources of profit optimization for a distributor. And few strategies can improve pricing in the distribution industry as well as precise, effective application of segmentation principles. In fact, many distributors are adding two to four points of gross margin…

Details

The Flexibility of a Cloud Subscription

The Flexibility of a Cloud Subscription We’ve made it easy to get started with epaCUBE Profit Optimizer® by offering the software in a cloud subscription model. That means you can immediately improve your gross profit without a large capital expenditure with the financial flexibility of a monthly payment. And there’s no need to purchase new equipment…

Details

Analyzing the Impact of a Vendor Cost Change

Analyzing the Impact of a Vendor Cost Change Naturally, when your vendors change their costs, this has a direct impact on your profitability. And while costs are more likely to increase than decrease, cost changes almost always present you with an opportunity to improve your gross profits. Unfortunately, vendor cost changes can happen rapidly and…

Details

The Secret to Continuous Gross Profit Optimization

The Secret to Continuous Gross Profit Optimization epaCUBE allows you to take action to continuously improve your gross profit. Your analysis isn’t a one-time event but a process that keeps your margins moving in the right direction. Your pricing manager may want to remove some segments out of the analysis by tagging them and then…

Details

Optimizing Segments

Optimizing Segments Price optimization is more than just crunching numbers. It requires proper segmentation, which requires the application of your own knowledge of markets, strategy and tactics in your business and industry. Bad segments can lead to skewed data. For example, not all small customers should be treated like small customers. Some products in price-sensitive…

Details

Floors and Ceilings, Targets and Ranges

Floors and Ceilings, Targets and Ranges At the most fundamental level, the approach epaCUBE takes to distributor pricing is to analyze your sales history and then apply statistical formulae to create a minimum and maximum range, a statistical floor and ceiling, a target price and then evaluate acceptable ranges in that statistical distribution. At the…

Details

Distribution Pricing is More Complex Than Retail Pricing

Distribution Pricing is More Complex Than Retail Pricing The approach that many experts take to pricing optimization is based on the worlds of retail and manufacturing. Unfortunately, retail pricing is much less complex than distribution pricing. In retail, there is a fairly consistent linear relationship between volume and margin. If I lower my prices, I’m…

Details