A new business strategy may demand a new pricing approach, and strategically aligning them is critical, according to Lee Nyari in 3 Lessons for Midsize Distributors. Nyari's lessons come from watching Grainger's pricing story unfold, which has raised the issue of pricing strategy for B2B distributors.
"Price structures and segmentation schemes that may work well for your established book of business may be less than ideal, if they are applied to support growth efforts in other markets that represent new territory for your business," Nyari says.
Instead of a one-size-fits-all approach to pricing, Nyari recommends examining new markets and planning a pricing strategy accordingly.
"The deeper your understanding of these markets, the better prepared you will be to develop pricing approaches and segmentation strategies that can effectively support profitable growth in your target areas," he says.
Read more lessons from Grainger's pricing story in 3 Lessons for Midsize Distributors.