ACTvantage for MDM: 5 Rules for Conducting a Pricing Reset
When distributors want more market share and to improve their topline, margins tend to take a hit. But this isn’t a strategic approach, and it won’t make for healthy margins in the future.
During times of disruption like we’re experiencing today, strategy and process are incredibly important, and over-discounting and undercharging should be avoided.
For margin recovery that’s sustainable and effective, we’ve identified five rules to adhere to moving forward.
They are the rules of:
- Visibility: You cannot optimize what you do not see.
- Control: You cannot preserve profit if you do not lock costs.
- Ownership: You cannot achieve results if you do not create accountability.
- Focus: You cannot win big by not starting with your core business.
- Balance: You cannot ignore the role of autonomy and management.
In an article for MDM, we explore these five rules and how you can integrate them into your pricing strategy.