Embarq Logistics Enhances Pricing With SPA

Embarq Logistics is a $750 million distributor of telecommunications products and services.

Says Brad Clark, Senior VP of Sales and Marketing, of Embarq's utilization of SPA:
"Our division was in the process of soliciting buyers for divestiture and we needed to improve our EBITDA as much as possible. We employed SPA because our results had plateaued and we thought we might be leaving money on the table. And we were. SPA likes to talk about delivering 2-4 margin points but from our experience we were leaving 6-10 points on the table. We provide some degree of price flexibility to our inside sales reps and even with those modifications, we still see meaningful margin improvements. We expect these increases to continue, and we will continue to cash checks with each improvement!"

"We started working with SPA in early spring and we had new pricing for 140,000 SKUs analyzed, designed and implemented by September. Because we were nervous about potential customer backlash, we established a control group that didn't receive the SPA-determined price increases as a way to be sure that the SPA program would not negatively impact sales. This was tracked every week and not only did the SPA program not hurt sales, the margins for the SPA group improved over the control group."

To learn more, visit the SPA Newsroom.

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