Price Optimization is a Low-risk Strategy for Sales Reps

Many distributors worry that implementing price optimization will trigger pushback from sales representatives. However, this concern often stems from outsourcing pricing to consultants using opaque methodologies that lack understanding of the client's business operations.

epaCUBE takes a different approach. The platform bases pricing decisions on actual data and thoughtful customer segmentation, leveraging internal knowledge of customers, products, and competitive landscape. Because the pricing reflects reality, sales reps trust it and face minimal objections. In fact, many representatives appreciate the corrected pricing guidance, as it improves their competitiveness and increases overall sales. A recent rollout with a $2 billion durable goods distributor resulted in zero sales rep complaints.

Why Customers Really Buy From You (Hint: It's Not Price Alone)

Research by Stax Insights surveying over 40,000 respondents found that only 18% of buyers considered price the most important factor in their decision. Customers choose suppliers for numerous reasons beyond lowest cost:

• Speed: Superior inventory availability, convenient hours, fast shipping, preferred vendor status
• Support: Deep understanding of customers' needs and business challenges
• Technology: Ordering efficiencies, e-commerce platforms, mobile tools, VMI, EDI capabilities
• Convenience: Geographic proximity and ease of doing business
• Relationships: Strong interpersonal connections with sales representatives
• Product mix: Commitment to specific product lines

What Do I Do With The 18%?

The remaining 18% prioritize price above all else. Options include eliminating unprofitable accounts or using data-driven segmentation to understand their actual value. Some price-focused customers may represent profitable volume; others cherry-pick lowest prices without understanding full product offerings.

Where the Rubber Meets the Road

When segmentation and pricing derive from actual data, sales reps trust pricing guidance and experience greater confidence during negotiations. This reduces override requests. epaCUBE's Optimized Price Quoter provides real-time pricing guidance directly from order entry systems, displaying statistically optimized price ranges as bell curves for each customer-product intersection, empowering reps during unique negotiations.