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Building Products Distributor Lifts Margin 120 Basis Points

Times Have Changed: Building Product Distributors Now Face Supplier Cost Changes Frequently. 
How Do You Strategically (and Profitably) Manage Pricing?

There was a time in this heavily project-driven industry when supplier cost changes, and all the downstream pricing processes triggered by them, happened once or twice a year. No more. Building products distributors now receive supplier cost changes multiple times per quarter and scramble to keep up, resulting overly general system prices and up to millions of price deviations.

Download the case study to learn how this building products distributor tackled this common pricing problem with an innovative approach. The company worked with Zilliant to optimize its system prices while providing sales reps with negotiation guidance where deviations were necessary. The resulting market-aligned prices now fall within an acceptable margin range without sacrificing revenue.

Challenges:

  • Frequent input cost changes
  • Overuse of price deviations
  • Lack of relevant price guidance

Key Outcomes:

  • 120 bps margin lift
  • Increase in system price usage
  • Fewer deviations/exceptions
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