Making fee-for-service work
Product DetailsExecutive summary: Fee-for-service will be a logical evolution of the traditional gross margin pricing model for the industrial distribution channel. Distributors and manufacturers need to strategically evaluate the outcomes of a fee-for-service world. This article presents three guidelines to predict the ultimate success or failure of service fees along with a scenario on how the channel could change if service fees work.
Distributors are understandably enthusiastic about new fee-for-service pricing models. Distribution exists to solve the problems that customers have in sourcing, acquiring, handling, and using products. Historically, they have been 'paid' for these specific tasks and functions in a marketing channel or supply chain in the form of gross '