Deist at STAFDA: Pricing is Key To Profitability
FEATURES
In any business, it’s easy to think that higher sales is all you need to make more money.
After all, volume gains, combined with trimming costs, seem like sensible ways to boost your bottom line.
But creating higher margins is not as simple as that, according to consultant Steve Deist of the Indian River Consulting Group.
“Getting higher sales and cutting costs is hard,” Deist told participants of the Specialty Tools & Fasteners Distributors Association convention in Charlotte, NC.
In reality, a modest price increase can create healthier profits, he said.
But achieving that price bump is challenging, Deist noted.
Successful pricing is “not about deceiving or tricking customers or sales reps,” Deist said.
Relying on customer ignorance or laziness is not a good strategy – especially in the social media age, he commented.
Business “relationships” are becoming more economically driven, with larger businesses pushing into smaller markets by providing more options and more transparency (think Amazon).
Achieving a price increase under such circumstances “takes a lot of effort, preparation and commitment and should not be entered into lightly,” Deist said.
FIN subscribers can click here to read the full story.
Related Stories:
• Grabowski at STAFDA: Vending “Minimally Profitable”
• Tinelok Licensed For Global Markets
Related Links:
• STAFDA
There are no comments at the moment, do you want to add one?
Write a comment