Less than 20% of your customer base makes up 80% of your profits. Chasing the wrong customers can cost you dearly – in time, resource investment, and opportunity loss.
To prioritize profit in your business strategy, distributors need to revamp their pricing strategy. Your sales team can move away from the ad hoc “deal desk” approach to a data-driven approach based on the perceived value they bring to their customers. A customer that values your services will pay more for those services.
Pricing has a solid trickle-down effect that goes well beyond winning the deal. A well-orchestrated pricing strategy sets the intention for your business. Eliminate unprofitable business pursuing and focus your efforts on those customers who have the promise to become more profitable.
