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A recent industry survey looked at Special Pricing Allowances. According to the survey by Allen Ray Associates and Channel Marketing Group, about a third of distributor respondents have more than 250 individual SPA, customer-defined, agreements. Another 13.6% had more than 100 SPAs.
About two-thirds say that the number of SPAs they negotiate will increase. Just 9.1% feel that they will eventually have fewer SPA agreements.
Distributors in the survey ranked SPAs as a 7.64 on a scale of 1-10 in importance to their current and future profitability.
"SPAs can be a competitive advantage for manufacturers and distributors to take market share when appropriately used," Allen Ray says. "The key is distributors claiming their funds to ensure their profitability."
Channel Marketing Group is a marketing consulting firm, and Allen Ray & Associates is a consulting firm focused on pricing and processes. They write the blog Electrical Trends, found here. "