Dealing with Outliers and Special Pricing Agreements
epaCUBE Price Optimizer users can quickly understand gross margin performance and review guidance for pricing and gross profit optimization. In addition, one of the powerful features of the solution is the ability to analyze all sales transactions, both those considered normal business and outliers or anomalies. The software shines a light on these outliers to uncover opportunities for gross margin improvement in data traditionally not considered part of the normal pricing optimization process. Gross margin improvement can be gained through managing or fixing customer and product segment mistakes, over-rides analysis and simply fixing errors in the data or calculations. The epaCUBE software simplifies the process and guides the user to discover pricing opportunities for gross margin improvement buried deep in data.
A successful pricing optimization program requires management, product specialists and sales buy-in for total adoption across your organization. The art of selling often needs to be added to the process. With epaCUBE, once the data segmentation work is done and the pricing optimized, the distributor can clearly see the potential impact and optionally manage the internal pricing change approval and negotiation process. Continued success and adoption can be greatly enhanced by involving management, product managers or sales.
Optimization of special pricing agreements or contracts and rebates offers a massive opportunity for gross profit gain. For those distributors who are in a heavily negotiated environment, epaCUBE’s software can analyze potential negotiation scenarios and provides guidance for optimized SPA and net-into-stock recommendations for profit improvement.
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