SPAs are simultaneously one of the most valuable margin levers in distribution and one of the least governed. In this context, SPA refers to Special Price Agreements which are ship-and-debit programs between manufacturers and distributors that support stock sales growth and align channel pricing. Distributors invest significant time negotiating favorable terms with suppliers, … [Read more...] about Rethinking SPA Optimization
SPAs
SPAs – Is the Cat Chasing its Tail?
In a market where most experience margin stagnation or margin erosion, strategies that can help improve profitability, potentially capture sales and as enhance / ensure quality processes, should be embraced. One of these strategies, which we’ve highlighted this fall, is effective management of SPAs, It is an issue for most distributors in the industry (as well as … [Read more...] about SPAs – Is the Cat Chasing its Tail?
SPAs- Are they Worth the Cost?
In a penny nickel business, every penny counts. Which is why SPAs can matter. Increasing gross margins and, more importantly, net profitability, in today’s environment is extremely challenging. Publicly-held national chains such as Rexel and WESCO report net profitability in the 4-4.5% range whereas the NAED PAR report typically proclaims a 2-4% net profitability for … [Read more...] about SPAs- Are they Worth the Cost?
SPAs – Are We / They In Or Out of Control?
SPAs, special pricing agreements, were originally conceived to ensure the integrity of local market into stock, and “street” pricing while providing distributors and manufacturers with a targeted sales pricing tool to deploy on an account-specific basis. The definition of “account-specific” has broadened with many taking liberty with the breadth (with and without … [Read more...] about SPAs – Are We / They In Or Out of Control?
