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Wednesday, October 2, 2019

Industrial Distribution Group Optimizes Pricing With SPA

Industrial Distribution Group is a $500 million industrial distributor with 31 sales offices and 10 distribution centers. One segment — the $200 million general distribution business — was underperforming.  IDG partnered with SPA to get help creating the discipline, controls, process and strategy that the business lacked in their pricing, with the hope that this could help deliver acceptable results.

Said Charlie Lingenfelter, CEO "We chose SPA because they offered not only a program, but also a compelling philosophy which made sense to us. Positive results? There have been so many. Our investment in the SPA program has delivered a 6-fold return on investment. Our profitability improved by $3 million in the first year alone. And, we get far fewer customers calling with pricing complaints, which frees up our associates to focus on providing real service to our customers."

Once the IDP associates saw the results and the ease with which their customers responded to the new pricing approach, they were on board and fully supported the effort. Says Lingenfelter, "Working with SPA has given us ideas we’d never have thought of ourselves. I always learn something new, something that makes a difference, every time I’m with them. The relationship has been extremely rewarding, across the board.

Learn more on the SPA website.

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For 2019 Distribution and Manufacturing Software Guide:

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Developed through a partnership with Industrial Distribution, Industrial Supply, Contractor Supply Magazine and Brown Smith Wallace Advisory Services, these 12 page Supplement Guides provide valuable, independently researched information. Each Guide details software company information, identifies vertical markets, highlights functions and technology features, new developments to the software package, shows graphs of the user range, basic entry price point, sales channel (how and where the software is sold), along with company contact information. The Supplement Guides provide everything you need to know when beginning your software selection and evaluation process.

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