10 Signs It’s Time to Restructure Your Pricing

10/14/2017

For a business to achieve business goals, pricing strategies and configurations must be regularly evaluated. By restructuring pricing when needed, businesses can streamline how they deal with pricing, as well as experience sustainable increases in profit margin levels. Though every business is different, there are signs that it is time to consider a pricing restructure.
Parts profit margins are  low or declining.

1.

Parts profit margins are low or declining.

You have an excessive  amount of contract pricing  for customers.

2.

You have an excessive amount of contract pricing for customers.

Employees perform an  excessive number of price  overrides at point-of-sale.

3.

Employees perform an excessive number of price overrides at point-of-sale.

Price update configurations  are not correct.

4.

Price update configurations are not correct.

Business has grown through  location expansion.

5.

Business has grown through location expansion.

The business is under  new ownership or  management.

6.

The business is under new ownership or management.

The business’s parts sales  strategies have changed.

7.

The business’s parts sales strategies have changed.

New product lines have  been introduced that differ  from the existing business.

8.

New product lines have been introduced that differ from the existing business.

Too much time is being  spent managing pricing maintenance.

9.

Too much time is being spent managing pricing maintenance.

Best practices in parts  pricing are not utilized.

10.

Best practices in parts pricing are not utilized.

For more information on price restructuring, email consulting@karmak.com or give us a call at 800-622-6311
.