The 2020 Mid-Year Economic Update_long

Grainger’s Pricing Initiative, pt 2: The Quest for Optimization

Since the January launch of its pricing initiative, Grainger has seen significant declines in profitability. While this margin trend is expected to reverse in 2019, its existence may signal that the pricing process Grainger is pursuing is less than optimal. This article, part 2 in a series, analyzes the challenges Grainger faces in implementing its pricing approach and provides additional lessons for other distributors looking to improve their pricing strategies.

This article includes:

  • What we know to be true
  • Are Grainger’s web prices more optimal?
  • Did Grainger miss the boat?

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