Why Distribution CEOs are Focusing on Pricing

Why Distribution CEOs are Focusing on Pricing

Your first goal as a CEO is to drive shareholder value through consistent growth in profitability.

Most distribution CEOs focus on three areas to drive profitability.

  1. Successfully procuring in-demand products that you can price profitably to your markets.
  2. Drive more profits from existing operations
  3. Expand business with current clients and win business with new clients.

The largest common driver in these three areas is pricing.

Pricing influences your market share, your share of wallet with individual customers and the profit of each individual product you sell.

In fact, optimized pricing can drive 2% to 4% gross profit improvement on your existing sales.

But who is in charge of pricing in your organization? Are you certain that all of your teams are mutually accountable for optimizing pricing decision and activities?

Data-driven analysis is the key to effectively setting prices, capturing market demand and maximizing gross profit.

The leading distribution organizations know precisely what the right price is for a certain customer buying a certain product at a point in time; there is no guesswork involved.

Driving shareholder value requires you to develop an optimal pricing strategy, implement effective pricing processes, measure and control pricing and aligning your technology with your pricing strategy.

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