AAPEX 2015

Margin Improvement Tactics for Distributors (Room The Venetian, Marco Polo 701-703)

03 Nov 15
2:00 PM - 3:00 PM

Tracks: Management/Profitability

Margin compression is a growing concern for many distributors. This presentation will address some of the tips and tricks that you can use to better manage the pricing process and improve margins. There are market driven factors that are beyond your control and other factors that are clearly within your control. This session will address some of the factors within your control and illustrate things that you can do to grow your top-line margin and improve operating profit without sacrificing sales growth or market share.

Attendees will learn:

  • How leveraging the information in your ERP system and sales transaction data can help you find significant opportunities to grow margins.
  • Why segmenting your customers into similar groups and stratifying them into a few different size tiers will not only help with your pricing strategy but also in determining what products and services you should offer.
  • Why offering “Distributor Finance 101”, a discussion and training that highlights the positive impact that comes from having a sales force that understands how and when distributors make money (net profit), is so valuable. We sometimes tend to become so focused on sales volume or gross profit, that we sometimes forget what’s most important, net profit…that’s what’s left over after all the bills are paid.