Why Pricing Matter Now More Than Ever
60% of wholesale distributors are looking at adding price optimization over the next few years.
Pricing and better segmentation are the fastest and most effective way for a company to boost profits.
According to Harvard Business Review, pricing represents one of the most powerful—and often overlooked—opportunities for new profit. In fact, improvements in price have three to four times the effect on profitability compared to proportional improvements in sales volume.
How big is the profit impact?
A mere 1% improvement in price translates into an 11.1% improvement in operating profit, while similar improvements in costs and volume have less impact.
Distributors are also turning to epaCUBE because they realize that their pricing and segmentation needs to be consistent across all channels – in the field, in each branch, online, at the counter and more.
Customers are more sophisticated than ever before and consistency is the key to keeping their business.
With higher profitability and better customer experience, pricing and better segmentation are the fastest and most effective way for a company to boost their bottom line.