Wholesale distributors face massive complexity, with thousands of products and customers, hundreds of sales reps, volatile costs and constantly evolving competitive dynamics, including increasing threats from non-traditional online competitors. As a result, distributors often struggle to set, manage and execute pricing strategies that simultaneously meet P&L objectives and enable sales representatives to win deals. Pricing is by far the most effective profit lever available to any company. However, many distributors often set pricing in terms of overly broad target margin percentages, cost-plus rules or list-minus targets, and ultimately relegate final pricing decisions to the field.

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