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Channel Strategy

We determine the optimal number and type of channels required to serve the market.

  • Position Statement - We craft a single statement that describes the supplier's distribution strategy

  • Ideal Channel - We define the attributes of the type of channel partner best suited to serve the target customer

  • Coverage Intensity - We analyze how many of each type of channel partner are required to serve each market

  • Customer Needs - We assess what it takes to satisfy end customers, and consequently what behaviors must be driven through the channel

  • Roles and Responsibilities - We determine whether the supplier or the channel is best suited to perform each go-to-market function

  • Sales Policy - We determine whether the supplier will sell to each customer segment on a direct or indirect basis. We also determine whether to restrict channels from selling to specific segments of the market
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Program Design and Validation

We reinforce a company's go-to-market strategy by building programs that are aligned with the supplier's values. We validate the optimal program through a combination of analyses

  • Program Structure - We determine the type of program most ideally suited to meet the client's needs: tiered, menu, laddered, points or combination approaches

  • Discount Levels - We quantify the competitive discount, allowance, rebate and/or commission levels required to drive the desired behavior, as well as their impact on margin, volume and street price

  • Criteria and Benefits - We outline the requirements and value added expectations for channel partners to participate in supplier programs and the benefits they will earn by performing at each level

  • Street Price Alignment - We identify the optimal value-price to the end user and develop channel compensation based on the street price, channel margin requirements and other factors

  • Terms and Conditions - We define all of the elements of the relationship between the supplier and the channel, including standard policies such as payment terms and freight allowances

  • Global Alignment - Our global or regional strategies reflect local market needs while remaining consistent with the client's overall channel strategy.
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Discount Diagnostics
  • Channel Margins - We determine the margins that channel partners should earn based on cost-to-serve, market power, functions performed, and other factors

  • Competitive Program Assessment - We identify competitor pricing, programs and strategies and assess the implications for our client

  • Program ROI - We determine the financial impact of the supplier's current programs or the expected impact from a change in strategy.

  • Channel Satisfaction - The process yields a channel satisfaction rating for the components of the channel program and for the program overall

  • Legal Position - In conjunction with our attorneys, we assess the legal risk of an existing or proposed program or policy

  • Administration Efficiency - We assess the cost, time and resources required to administer a current or proposed channel pricing strategy

  • Program Costs - We quantify channel pricing costs such as discounts, rebates, allowances and other factors to identify where profit may be leaking out of the channel pricing system
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Influence Communications

We develop the materials and facilitate the forums necessary to effectively communicate new channel strategies and programs, to both internal and external stakeholders

  • Program Marcom - We create the web and print materials necessary to communicate and promote the new program

  • Operations Manuals - We develop detailed operational guides for program execution

  • Field Training - We design and deliver training programs for internal and external stakeholders to prepare for program launch

  • Channel Contracts - We build program enrollment processes and, in conjunction with our attorneys, craft the contracts that define the supplier-channel relationship

  • Launch Meetings - We facilitate the meetings suppliers often conduct with their channel partners to launch their new channel programs

  • Advisory Sessions - We facilitate and/or participate in channel advisory councils to elicit information and assess partner reaction to new programs and policies
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Managing Change

New channel strategies impact the way suppliers manage their businesses. We make certain that the company's internal resources and processes are organizationally aligned with its go-to-market approach.

  • Functional Coordination - We make sure that program roles, responsibilities and processes are aligned across the sales, marketing, operations and finance functions

  • Program Management - We identify and train the key people accountable for program administration

  • Compliance Integrity - We review whether and how the client is enforcing its channel pricing policies

  • Sales Compensation - Ensuring sales force compensation is aligned with the channel pricing strategy to drive

  • Systems Alignment - Making sure the information systems provide the data to administer and communicate the necessary information
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Fulfillment and Reporting

We facilitate effective implementation by providing all services necessary to execute the new channel pricing strategy

  • Channel Scorecard - We develop the criteria to rank channel behavior, record the results and circulate the "scorecard" reports

  • Profile Analytics - We assist management in gaining a truer understanding of their channels by analyzing the correlation between specific channel profiles and performance

  • Coop Administration - With our partners, we administer coop and MDF programs including advertising verification and payment processing

  • Rebate Processing - Administration of reward verification and delivery of rebates to channel partners

  • Point-of-Sale (POS) Analysis - Identifying product and market opportunities using the sales data collected from the channel partners

  • Program and Contract Enrollment - We manage the process of enrolling partners in your new or existing programs
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About DARTCheckSM

Discounts, Allowances, Rebates, Terms

The DARTCheckSMis a quick hit analysis of a current or proposed channel pricing strategy. It is designed to assist management in making sound decisions as they prepare for the next cycle. With a DARTCheckSM, you select which "darts" to review and how many channels to audit. The DARTCheckSM provides you with:

  • Market feedback from selected channel partners and from the sales force
  • An understanding of program administration and enforcement
  • Best practices that apply to your business
  • Sales data analysis and review
  • The expertise of Channel Pricing Associates
  • Rapid turnaround in time for your deadline
Get started today with a DARTCheckSM

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