Delivering for Best-in-Class Wholesaler-Distributors
As CEO of SPARXiQ , David Bauders has been committed to helping companies accelerate sales and profitability with the right analytics, tools and complementary skills training since he founded the company in 1993. Connect with David on LinkedIn.

The Growing Impact of Freight Recovery – Intelligent Sales and Profit Acceleration #14

There is a silent but growing profit drain leaking away at wholesale distributors this year, and according to experts, it’s likely to double next year and beyond. For the average distributor with an EBIT of four percent, it could potentially reduce their profitability by 60 to 150 basis points, or 15 to 25 percent. However, [...]

Read More

Push Beyond Your Traditional Pricing Challenges – Intelligent Sales and Profit Acceleration #13

Everyone knows that distribution is a thin-margin business, with net operating profit averaging around four percent of revenues. Even elite distributors struggle to attain or sustain double-digit levels (aside from those in certain specialty market segments). With these thin margins, every point counts. A four-percent company that consistently gets one margin point more across thousands [...]

Read More

Optimize Pricing and Improve Profitability – Intelligent Sales and Profit Acceleration #12

Marketplace pressures continue to evolve and change the competitive landscape, ranging from commoditization to eCommerce to the changing workforce. These factors are beginning to negatively impact the bottom line for many distributors. Distribution is traditionally a thin-margin business to begin with, so these new pressures are challenging many distributors. What is your company’s profitability outlook [...]

Read More

The New Normal of Vendor Cost Increases – Intelligent Sales and Profit Acceleration #11

The current economic environment provides a once-in-a-generation window of opportunity for manufacturers and distributors to take pricing actions that boost profitability – significantly now and compounding into the future. Due to the overwhelming demand, supply-side constraints and monetary inflation, both manufacturers and distributors are experiencing an unprecedented frequency and magnitude of cost increases. Many vendors [...]

Read More

Where Are You on Your Pricing Journey– Intelligent Sales and Profit Acceleration #10

Most distributors believe that their efforts of building home-grown pricing matrices amount to accomplishing strategic pricing, but they often experience only modest or flat or even declining (over time) profit improvements. Why? The truth is that strategic pricing isn’t a “yes” or “no” proposition. I’ll propose a new way to think of strategic pricing as [...]

Read More

Migrate from Indiscriminate Order Taking to Strategic Market Making – Intelligent Sales and Profit Acceleration #9

Every day, in B2B businesses everywhere, salespeople are having conversations intended to produce current and future revenue and profitability. For the vast majority of these sellers, whom they spend their time with on any given day is largely an unplanned or reactive outcome. Most sellers don’t have clear insight into which customers produce the greatest [...]

Read More

Understanding the Dynamic of Vendor Cost Supports – Intelligent Sales and Profit Acceleration #8

For distributors in many industries, receiving special cost support from their vendors is critical to winning price-sensitive, end-customer or project business while maintaining profitability. In industries such as electrical, plumbing/HVAC, automation, power transmission, vendors commonly provide distributors with lower costs than their everyday, standard into-stock (SIS) costs. These special lower cost levels are commonly delivered via Special Price Agreements (SPAs) or rebates. In many [...]

Read More

Integrating Strategic Pricing to Optimize Profitable Growth – Intelligent Sales and Profit Acceleration #7

In my last article, I touched on strategic pricing by discussing the tension between sales and pricing. Strategic pricing for most manufacturers and distributors isn’t truly a mature discipline (witness the continuing reliance on Cost-Plus, endless pricing overrides and the neglect of contracts and customer-specific pricing agreements), but it’s stuck in a deadlock between sales [...]

Read More

Resolving the Tension Between Sales and Pricing – Intelligent Sales and Profit Acceleration #6

Many distributors may consider strategic pricing to be a relatively mature opportunity because it’s been around for a few decades now. After all, lots of distributors have built pricing matrices, established controls and put pricing managers in place. While this may be the case, many still treat pricing as a checklist activity, without any intention [...]

Read More

Product Expertise Isn’t Enough for B2B Buyers Anymore – Intelligent Sales and Profit Acceleration #5

It’s no secret that for years most distributors have neglected core sales skills training for their sellers. There are several reasons for this benign neglect of sales skills investment. First, historically, industrial B2B buyers didn’t necessarily need a highly skilled seller. Their purchases were largely needs-driven — not discretionary — and so the core need [...]

Read More
ajax-loader