MDM’s Top 5 Blogs of March - Modern Distribution Management

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MDM’s Top 5 Blogs of March

A common theme resonated throughout MDMs most-read blogs.

Distributors in March zeroed in on MDM blogs that tackled the topic of improved profitability and pricing management. From how to address sales reps who inadvertently lower profit margins through well-meaning customer interactions to why 'buy low, sell high' is a short-sighted strategy, these top posts provide key takeaways for improved business management. Follow the links below to read MDM’s most popular blogs from March.

1. Your Inside Sales People are Giving Away Your Profits

Years of sitting in on distributors’ inside sales calls revealed too many reps make a regular practice of upfront discounting with the idea that they’re providing a customer service, says MDM’s Ian Heller. These well-meaning sales reps are not trained on their company’s value proposition and pricing strategy.

2. Maybe Your Margin Problem is That You’re Buying Wrong, Not Selling Wrong

Taking the time to develop a sophisticated purchasing strategy will pay off with lower product costs, says MDM’s Ian Heller. For distributors without a plan, Heller shares five short- and long-term solutions to lower costs and improve profit — without raising prices.

3. How Distributors Can Raise Margins Without Raising Prices

Do you have processes in place to maintain detailed product inventory information, build a demand planning strategy, create a category management function and more profit-maximizing plans? MDM’s Ian Heller builds a case that most distributors lack proper product tracking and fail to integrate customer market intelligence, among other missteps.

4. MRO Buyers Primed for New Suppliers

Corporate MRO buyers may be shifting their purchasing behaviors when it comes to Amazon Business and the way they manage core traditional suppliers, argues industry analyst David Gordon. Here are his recommendations for distributors and suppliers to compete more effectively against these trends he’s seeing emerge.

5. The Blind Spots of Pricing Strategy

Distributors would be wise to reconsider the typical ‘buy low, sell high’ approach to pricing, says Bruce Merrifield, partner at WayPoint Analytics. Other activities that can hurt pricing strategy include working with too many regular suppliers, giving the sales team a ‘last look’ at price and confusing naturally higher margin percentages as automatically more profitable. 

Working to create a pricing plan and examining process can help distributors create sustainable profitability. Learn how to maximize margin dollars, drive profits and leverage your spend at MDM’s Pricing & Profitability Summit in Denver, April 15-17. 


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