Pricing For Profit

Pricing is the most difficult challenge in every distribution organization. There is widespread understanding that pricing is the single-largest driver of profitability. At the same time, every firm is in constant fear of being characterized as overpriced. Walking the pricing tightrope carefully is essential for success.

Most firms have more pricing opportunities than they appreciate. The challenge is to find those opportunities and implement them forcefully. This requires the entire company to accept strong pricing discipline.

Question of the Day

We feel we have to get more price aggressive to drive up our sales volume. How large of a sales increase will be required to offset a price cut?


Probably a lot more than you think.