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FAQ

Who is SPA?

SPA is the leading provider of pricing analytics to complex companies of all types manufacturing, distribution, equipment, services, and software/technology products. Since 1993, we’ve built a strong platform of proprietary analytics to quickly and efficiently help companies convert their own invoice data into pricing architectures that maximize their pricing performance and competitive position. Our typical client applies our pricing architecture and improves profitability by two to four percent of sales: $2 to $4 million per $100 million of affected revenue. The benefits are staggering; and they are typically accomplished in less than 90 days.

What is your product?

SPA provides recommended pricing architectures and related process training to complex companies. SPA helps clients to quickly and efficiently build a more profitable pricing architecture in their enterprise system, without complex and costly integration efforts.

We work with our clients to segment their customer base and product/service sets. They give us a slice of invoice data that describes their actual pricing performance – who paid how much for which product/service and how many they bought – and we apply our proprietary analytical models to these data to recommend what their pricing architecture should look like. We profile the relative sensitivity of customers and products, to recommend pricing structures that focus discounting where it pays off in the market; and extract price premiums where there is less sensitivity.

We recommend price levels by product/service category and customer segment, as well as customer/product-specific price levels. We recommend list prices, discount/mark-up structures, and even customer contract pricing. We develop guidelines to help our clients manage and control exceptions to the architecture, and to identify pricing leakage points in the business. We coach our clients on the principles of strategic pricing and the process of mastering pricing. We assist you in training your sales reps in the practical and cultural dimensions of this program.

Who are your customers?

Our clients span a broad cross-section of the world economy. Our clients comprise the largest Fortune 500 industrial companies, such as ExxonMobil, GE, Parker Hannifin, Rockwell, Mitsubishi/Caterpillar, Pella, American Standard. Our pricing architectures have proven equally effective in North America, Latin America, Europe, Asia. We also serve mid-size manufacturers.

We serve the world’s largest distributors, such as Grainger, Wesco, Industrial Distribution Group, and ThermoFisher Scientific; Caterpillar dealers; as well as hundreds of mid-size and small distributors and equipment dealers. Our distribution coverage spans all major segments: industrial, electrical, building products, medical, fasteners, paper & packaging, plumbing/HVAC, chemicals, food.

The benefits of Strategic Pricing are now easily accessible by Epicor customers. Through a new partnership between Epicor and SPA, Epicor customers can now easily access SPA’s powerful analytics and margin improvement capacity gained over the last 16 years of its work with large distributors.

What do all these diverse companies have in common? They all want to improve their profitability in very complex environments: thousands of products and thousands of customers. With clients ranging from $2 million in annual revenue to billions of dollars, the opportunity is great.

Why is it valuable?

Our clients, whatever their market segment, have significant customer and product complexity. With thousands of products and thousands of customers, their potential pricing combinations quickly range from millions to over one trillion possibilities. Their sales forces price their products and services to the best of their ability, but they need a strong pricing architecture to help them maximize profitability. Lacking an effective pricing architecture, they will apply discounts inconsistently and un-strategically. The costs, and the related opportunity, are staggering.

We help a company to build a pricing architecture that recognizes their own history, and defines a pricing strategy that will reign in wasteful discounting while extracting premiums from the less sensitive products/services and customers. We provide the pricing analytics and process training to help companies extract two to four percent of sales (or more), while sharpening their competitive position in the market. Our typical client applies our pricing architecture and improves profitability by two to four percent of sales: $2 million to $4 million per year, per $100 million of affected revenue. The benefits are staggering; and they are typically accomplished in less than 90 days.

What differentiates SPA from its competitors?

SPA is the leading provider of pricing analytics and process training today. With hundreds of clients spanning a huge cross-section of the world economy, we know pricing, we know data, and we know markets.

Unlike pricing software companies that sell complex, time-consuming, costly integration projects,SPA helps clients build profitable pricing architectures in their own enterprise systems. Unlike pricing consulting firms which ask you to interrupt your business to train them in order to teach you, we have developed a quick, efficient data-driven process that focuses on the essential analytics that you need to master pricing.

Our typical client team spends approximately two weeks over a 90-day period to master their pricing strategy and processes. Two days of training, one week preparing data; one week evaluating, modifying and loading our recommendations into their enterprise system. We have a proven track record of helping complex companies consistently extract and sustain improvements of two to four margin points, even in the most demanding and competitive markets. The process is data-driven, staff-efficient, and high-impact. In today’s tough economy, the timing is perfect.

Who can use Strategic Pricing?

Companies with significant complexity: thousands of customers, hundreds/thousands of SKUs, parts, or services; and significant pricing variance.

How do you bring discipline to pricing?

Our indexing platform allows our clients to rigorously measure the actual price performance, and set standards for the desired price performance of their customers, product lines, sales reps, branches, etc.

What are your program’s objectives?

To maximize your margin performance in a market-sensitive way, focusing discounting where itpays off and extracting premiums in low-sensitivity areas of your sales mix. To master pricing strategy as well aspricing process. We will help you segment your customer base, measure your customers' price performance, profileyour customer- and product-level price sensitivity, analyze your pricing process performance, and set strategic pricestructures.