 |
| Every quarter John Henderson, President/CEO, allows a limited number of complimentary half-day consulting sessions for companies who have not used our services in the past 3 years. These half-day consulting sessions are always scheduled well in advance. To arrange a complimentary session, please call Karl Edmunds at (312) 558-4866 to determine availability. |
 |
| Have a question? |
 |
|
| Register for our Quarterly Newsletter |
 |
|
| Register for our Construction Industry Newsletter |
 |
|
| Register for our Technology Industry Newsletter |
 |
|
| Register for our Industrial Market Newsletter |
 |
|
|
We believe channel-pricing programs should be activity/performance based. Most traditional channel discount structures are primarily based on volume or growth. These programs reward distributors/dealers for their buying behavior. We believe channel pricing programs should encourage specific buying, selling and operational behaviors within your channel partner.
The most effective method to evaluate and redesign your discount program is to first determine what the end customer values. These values help to define specific capabilities, activities and services that your channels must deliver to satisfy the end customer. We know that not all channels are created equal. Different channels have different cost structure and margin requirements because they perform different activities. Your channel-pricing program must recognize the differences in the channels and reward those channels that perform the desired activities in support of the end customer.
Similarly, you, the manufacturer, must define what you value from the channel above and beyond meeting the customer's needs. You likely value volume and growth. You may also value activities that lower your costs like electronic ordering, a low number of returns, large order sizes, etc. You may also value "loyalty." These values are also to be used to evaluate the effectiveness of your existing channel discount/pricing program.
Lastly, we consider what your channels value. The rewards/incentives we design into a new channel-pricing program must motivate the dealer/distributors principal and we must ensure that the distributor's sales force is also motivated to perform on your behalf.
This in-depth assessment of values becomes the cornerstone for the process of evaluating the effectiveness of your existing programs and helps to highlight the changes that are required.
We work with clients to change channel-pricing programs by assisting clients in carefully assessing the risk associated with changes proposed and by understanding the impact of the behavior changes we expect from the channel. We recommend that our clients form a cross-functional working team to define the needed changes and construct detailed implementation and communication plans.
Changing your channel discount pricing programs is a complex and emotional action. The Frank Lynn & Associate's process helps bring cross-function management the insights required to define the changes needed and a strong understanding of the likely results prior to implementation.
What are your most challenging sales channel problems?
|
|
|
|
 |
|
|
|
|
|
|
|
|
|
|
|
|
| October 21, 2010 |
| Professional Sales Channel Management |
Using proven management tools, frameworks and methods to prepare channel managers to drive sales and market share through indirect sales channels.
|
|
|
|
