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Have you taken a strategic look at your sales channel discount structure lately? |
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| > | Are volume discounts weighted properly? |
| > | Are the thresholds appropriate? |
| > | Do incentives for performance motivate the appropriate behaviors? |
| > | Is it better to have incentives on the front end in the form of a discount or on the back end in the form of a rebate? |
| > | How do other economic forms of compensation fit within your overall channel compensation strategy (co-op or MDF funds, payment terms, freight terms, etc.)? |
| > | If you use tiers to define differences in rewards/discounts, are the tiers properly defined? |
| > | Are they based on what the customer values? | |
| > | Do they drive efficiency for you? |
| > | Are you subsidizing poor performance? |
| > | Can or do elements of your discount program encourage undesired behavior and/or create channel conflict? |
If you are unable to confidently answer these questions, your channel pricing structure is likely costing you in a variety of ways e.g., wasted margin dollars, loss of market share, lost sales to competitors, loss of mind share, poor brand recognition among end-user customers.
How Can We Help?
Channel discount programs can involve the payment of millions of dollars to your channel partners. And many programs are complex; making changes to your channel compensation program an emotionally charged issue.
While many companies believe a change in their discount structure approach is needed, they don't know where to start.
To properly examine channel compensation requires a systematic assessment of every aspect of your program, from strategic business objectives, legal constraints, program metrics, management functions and organization design.
Frank Lynn & Associates has consulted with dozens of companies across a diverse set of industries in the redesign of channel pricing programs.
We offer a comprehensive Channel Pricing Audit as a first step to resolving complex channel discounting issues.
The Frank Lynn & Associates "Channel Pricing Audit" process involves the following:
| > | We will provide a list of data, materials, and information needed for the audit. A survey of questions will be distributed to key client personnel. These surveys will be completed and returned to Frank Lynn & Associates |
| > | Frank Lynn & Associates will schedule an initial two-hour telephone discussion with key managers that are familiar with the current discount approach, policies and programs |
| > | We will review the program information and survey results. Afterward, Frank Lynn & Associates will schedule one-on-one discussions with key management personnel and field sales representatives. This is done in a two-day session at the client's facilities |
| > | After analyzing the data and information provided and incorporating the views of key internal staff, we will structure a one-day work session with the client to discuss the pros and cons of the existing program and recommended areas where changes are likely to have a positive impact on the company and more effectively align with overall sales goals and market share objectives |
The Channel Pricing Audit consists of six consulting days and provides an assessment of your existing program (or a newly developed program). It consists of discussions with management and sales personnel inside your company and an evaluation of your existing program structure and channel policies and programs.
It does not involve input from your dealers/distributors/resellers-it relies on an internal view of the program and Frank Lynn & Associates' experience.
If appropriate, the scope of the audit can be adjusted to include direct input from your dealers/distributors and resellers. Contact us to discuss a quote for this input.
What are the Benefits of the Channel Pricing Audit?
Our structured approach will provide the following benefits/deliverables:
| > | Our audit will identify if a change in your current program is warranted |
| > | The audit will identify opportunities to change your current program to more effectively drive the desired behavior of channel partners |
| > | The audit will help management to determine if policies are aligned and/or missing |
| > | The audit can be used to identify program issues that create conflicts and impede growth objectives |
| > | The audit will identify incentives/payments that may be improperly structured generating wasted expenditures |
| > | The audit will provide a forum to discuss alternative channel compensation programs and their potential fit and benefit to your company and your products |
Why Frank Lynn & Associates?
For over 30 years, Frank Lynn & Associates, Inc. has been dedicated to one goal-helping companies design and implement effective and efficient go-to-market systems that deliver tangible business results.
We help our clients create management and pricing systems that enable them to market, sell, deliver and support their products and services and drive growth in sales and market share. Frank Lynn & Associates brings market and channel pricing insights to you based on hundreds of engagements in a variety of industries.
We provide in-depth knowledge and expertise in dealing with the marketing and sale of products and services through direct sales forces and indirect sales channels, such as system integrators, value-added resellers, distributors, dealers, specialty retailers, catalogs and the Internet.
What is the Investment in a Channel Pricing Audit?
A principal of Frank Lynn & Associates leads each Channel Pricing Audit. Your investment in the audit is $28,500 plus direct expenses. This includes meeting preparation time, data gathering and survey management, phone conferences, management interviews, data analysis, and final on-site presentation of findings and recommendations.
While our audit is not intended to be an actual redesign your current pricing program, if it is determined the services of Frank Lynn & Associates are needed to formalize and implement a new pricing strategy, the investment made in our audit will be utilized by Frank Lynn & Associates and reduce the overall cost of creating a new discount/compensation program.
Yes, I am Interested! What are the Next Steps?
In most cases, we conduct two "Channel Pricing Audits" each month, and we typically schedule them one to three months in advance. If you are interested, please contact John Henderson, President, at (312) 263-7888 to discuss the audit in more detail and to schedule convenient dates.
Are There any Options?
Yes, we offer a more simplified assessment for companies. We will work with you to tailor the audit to best meet your requirements.
Our Guarantee...
Our proprietary compensation audit works. We have over 30 years of proof. Our guarantee is simple, if you are not completely satisfied with our audit, we will resolve your issues or waive our professional fees.
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