In a world where competitive pressures do not exist, pricing for distributors would be simple and straightforward. Manufacturers would publish List Prices for their products and provide their distributors with Net Prices. The distributor would use the Manufacturer’s Suggested Sell Price to establish customer pricing, with the gross margin covering operational costs and profit targets.
About the Author
Dan Barlow, Strategic Consultant at PROS, has direct experience in pricing and revenue optimization for the distribution industry. Prior to joining PROS, he served as a pricing analyst and vice president of operations for a major distributor, bringing millions in new revenues to the bottom-line through margin corrections. Barlow is well-versed in all the methods distributors use to drive cost from their business, including the use of leading technologies. In addition to his 16 years in distribution, Dan spent 9 years in the manufacturing industry. He holds a degree in industrial distribution from Texas A&M.