Search

Switch™ by SPARXiQ

Optimize pricing on your non-core items

SPARXiQ has discovered, from years of studying distributor transaction data, that companies actually lose money on a surprising amount of low-demand products. The reason? Traditional pricing methods don’t account for cost to serve variances specific to certain long-tail, ancillary items. When these items are priced, marked up, or discounted the same way that competitive, high-volume products are, they are much less profitable, and often unprofitable altogether.

For many companies, this is a missed opportunity. These profit-draining products are almost always items that are insensitive to price increases and can sell just as well with small amounts of added margin.

Switch™ by SPARXiQ uses proprietary approaches to quickly and easily identify and correct pricing on these low-sensitivity, high cost-to-serve items that are cutting into your profits. 

Do you know your customers' price sensitivity for each of your unique SKUs?
Do you factor that into your pricing?

Small Change, Big Impact

Switch™ by SPARXiQ unlocks significant profit improvement with ease.

Simple.

Switch™ is designed to integrate directly into your ERP system, requiring very little implementation support from your team.

Speedy.

Extracting your data, reviewing recommendations, and fully implementing the changes can be completed in 30 days or less.

Significant.

With minimal investment, you can realize a significant profit gain. Use the calculator below to see exactly how much.

What is Switch™ Worth to Your Company?

Using Switch™, SPARXiQ has helped hundreds of clients reliably gain 1-2% bottom-line profit, or more, on affected revenue. Surprisingly, these significant gains are solely based on making minor adjustments to some of your least-sensitive items.

Move the sliders to uncover your hidden profit potential. These numbers are estimates, but are reflective of the results the vast majority of SPARXiQ clients achieve.

Want to learn more about how to start increasing your profits? Contact us.

Contact Us
$

Determining True Price Sensitivity

What makes Switch™ so powerful is our ability to quickly and accurately evaluate each item’s true price sensitivity. Where many companies focus mostly on volume and velocity of sales, SPARXiQ provides a proprietary statistical evaluation that includes twelve dimensions of price sensitivity. The result? Sensitivity ratings account for the subtle nuances in your transaction data and reflect the true sensitivity of each individual item.

Focus on the Non-Core

Price optimization projects occasionally encounter resistance from customers or the sales team when core items are increased. For this reason, Switch™ only focuses on the non-core items from the product families that are the least sensitive to the customers. Because of this careful approach, our clients who use Switch™ rarely encounter any resistance from the sales team or customers.

The fact is, many companies can realize significant profit improvement by just addressing the non-core items Switch™ targets.

Getting Started with Switch™

Unlocking profit improvement with Switch™ is as easy as it sounds. You can begin adding margin to their high cost-to-serve items in 30 days or less.

  • Extract Transaction Data

    Extract basic transaction data from your ERP. If you use one of several leading ERP systems, native integrations can automate the extract and make it even simpler.

  • Switch™ Analysis

    SPARXiQ runs its proprietary statistical analysis on your data, evaluating the true price sensitivity of each SKU you sell.

  • Modify & Approve

    Switch™ is not a "black box" pricing solution. Before any adjustments are made, you have the ability to modify and approve them based on your market knowledge.

  • Import Price Recommendations

    Depending on your sales team's pricing methods and your ERP, the margin adjustments are made to the price or cost basis of each item.

SPARXiQ has helped numerous companies uncover significant profit gains by addressing this costly issue.

Don’t miss out on capturing the profits your competitors already have access to. Be the next company to successfully flip the Switch™ on your profitability.

Contact us to schedule a demo and learn more:

Related Articles & Posts