Pricing and Revenue Growth Management

Most distributors are not
under earning. They are leaking.

The margin is already in the business. It leaves through four valves, and every oneof them is a governance problem before it is a math problem.

Gut feel pricing

The rep quotes from memory, or from the last order, or from what he thinks the competitor will do.

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Slow cost pass through

Supplier raises cost in March. The sell price moves in July. That delta is gone forever.

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Discount drift

A one time concession to win a job becomes that customer's price for the next nine years.

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Optimize

Training, enforcement, and governance cadence so the standard survives past go-live.

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The Arithmetic

Why price is the highest leverage line in a distributor

A distributor does not manufacture. Thin gross margin, thinner EBITDA. A recovered dollar of price carries almost no cost, so it arrives at EBITDA nearly intact. Here is the arithmetic. Check it against your own numbers.

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Typical gross margin
18-25%
On a $1,000 order the distributor keeps roughly $200. The rest went to the manufacturer.
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Typical EBITDA margin
4-8%
Most of that $200 is consumed by branches,trucks, warehouse labor, and sellers.
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1% of realized price
≈22% EBITDA lift
The extra $10 costs nothing to produce. On$50 of EBITDA it is a fifth of the profit.

What leaks - value at stake

300 to 500 bps

At $500M revenue that is $15M to $25M of annual gross profit sitting in the business unclaimed.

What gets kept - realistic recovery

200 to 300 bps

$10M to $15M on that same company, sustained rather than a one year reset. Full capture is not the standard and we will not claim it.

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One Category, Two Levers

This is the same long tail,
viewed through margin

The coverage gap
The pricing long tail

Thousands of profitable accounts nobody proactively calls, because fieldeconomics will not stretch that far

Thousands of low volume items and small accounts nobody deliberatelyprices, because analyst attention will not stretch that far

Attention allocated by relationship and revenue size, not by potential

Price attention allocated by deal size and squeaky wheel, not bymargin opportunity

Answer: give the long tail an owner

Answer: give that owner a rule to price by

Give a neglected account base a proactive owner and you create thousands ofnew pricing decisions almost overnight. Coverage creates the growth.Governance decides how much of it you keep.

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Our Services

The capability stack, in sequence

Component
Sales Excellence Index™

Margin leak diagnostic

Where margin is leaking, through which valve, and how many recoverable basis points are at stake

Key value item and price sensitivity analysis

Which items customers actually price shop, which they do not, and where elasticity permits movement

Segmentation and long tail optimization

Price differentiated by customer value and cost to serve rather than by who negotiated hardest

Guardrails, corridors and floors

Explicit boundaries a seller can move freely inside, and a hard line he cannot cross

Price change and surcharge governance

Real time visibility that flags the account about to slip, before it slips

Deal and exception governance

Call prep, account research, follow up drafts

Seller enablement and adoption

Sellers who can defend a price instead of discounting to end the conversation

Governance retainer

We stay until the operating system runs without us

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Governance, Not Basis Points

Why pricing work usually fails, and what we do about it

Build a CRM and AI operating layer that drives consistent commercial execution not just better reporting.

What a pricing
vendor leaves behind

A correct model. Elasticity that holds up. A corridor structure that would have protected real margin. And no change in behavior, because the model never reached the person quoting the job at 4:30 on a Thursday with a customer on hold.

What we install

The governance and the adoption. Pricing does not fail on math, it fails on adoption. We already own the hardest part of this work, getting a sales organization to actually change how it operates, and we stay long enough for it to hold.

“My approach is business first. I define the analytics requirements, lead the commercial strategy, and direct data scientists to build the models that support execution.”

Shafohi Alamgir, VP Pricing and Revenue Growth Management

Practice Leadership

Why pricing work usually fails,
and what we do about it

Shafohi Alamgir

Vice President, Pricing and Revenue Growth Management

She has run pricing from the branch counter, from the enterprise analytics seat, and from the chair that owns the function.

Thirty three branches and more than a hundred distribution sellers trained on deal quality and discount discipline. Enterprise pricing analytics across a portfolio above $6 billion. Then architecture, deal governance, and revenue management across $1.5 billion. Twenty two years, portfolios from $1.5 billion to more than $6 billion, well over $100 million in cumulative gross margin and EBITDA improvement, and repeated margin expansion in the 200 to 300 basis point range.

Where she built it
Credentials

University of Illinois

BS, Industrial Distribution Management

Professional Pricing Society

Certified Pricing Professional

Prosci

Certified, Change Management

Frequently Asked Questions

Will this take price discretion away from my sellers?

No. It realigns discretion with the economic risk of the transaction, which is a different thing. Today your highest paid sellers are probably setting price on every transaction, including thousands of low visibility line items where their time adds no value, while genuinely strategic exceptions get the same casual treatment as a $200 stock order. We build a negotiation corridor, an entry point, a target, and a floor, with clear rules for where each applies. Inside the corridor, sellers move faster than they do today because nothing needs approval. Outside it, exceptions get reviewed by someone accountable for margin, quickly, with a reason code that improves the guidance over time. Most sellers end up with more autonomy on most transactions. What goes away is not discretion. It is unexamined discretion on the small percentage of decisions where real gross profit dollars are at risk.

My gross margin percentage looks like last year. Why would I think anything is wrong?

Because gross margin percentage is an average, and averages are where margin problems hide. A flat number can conceal cost inflation you passed through late, mix shift toward lower value work, quote losses on larger opportunities, and off invoice leakage in rebates, freight, and terms, all moving against each other and netting out to "looks like last year." The questions that actually reveal the condition of your pricing: What is your win rate on quotes above $5,000, and is it falling? How much unexplained price dispersion exists between similar customers buying the same item? What percentage of your revenue actually runs through systematic pricing governance versus being priced by memory, habit, or a spreadsheet from 2016? In our experience, executives who can answer all three usually do not have a problem. Executives who cannot are usually surprised by what the answers show.

We already have a price matrix in Prophet 21. Is that not governance?

A matrix is a rule set. Governance is what surrounds it: who can override it, what happens when they do, how often it is refreshed when costs move, and, most importantly, what share of your revenue actually flows through it. When we run this analysis at distributors, the answer to that last question is routinely a minority of the book. Contract customers, OEM business, systems and project work, and legacy customer specific pricing often sit entirely outside the matrix, priced on methodology nobody has reviewed in years. And inside the matrix, drift accumulates: items within the same size run priced wildly out of proportion to each other, exceptions layered on exceptions, logic ported forward through two ERP migrations because nobody owned rationalizing it. So the honest answer is: a matrix is necessary and not sufficient. The first question worth asking is what percentage of your revenue it actually governs. Most executives have never seen that number. It changes the conversation when they do.

How is this different from a pricing software tool?

Pricing software optimizes a number. We build the commercial system that determines whether the number ever reaches your P&L. The gap between those two is where most pricing initiatives die: a technically sound recommendation arrives at the quote line, the seller does not trust it, the manager does not inspect it, the compensation plan rewards ignoring it, and eighteen months later the tool is a line item in the budget review. We are technology agnostic by design. If you already own a pricing tool, our job is usually to make the system you already paid for produce the EBITDA it was bought to produce, by fixing the decision rights, workflow, incentives, and management routines around it. If you own nothing, we design the operating model first and recommend technology only where the business case requires it. The result we sign up for is realized gross profit dollars, verified against your financials, not a recommendation deck.

Will my outside sales team fight this?

They will fight a black box. They will not fight a transparent system that makes their approvals faster and their commission checks more defensible. Field resistance to pricing programs is usually rational: the data was stale, the guidance was opaque, the approval took three days while the customer waited, and the last corporate initiative made their job harder without making them money. So we design for adoption rather than hoping for it. The logic is explainable, a seller and a manager can see why a given customer and product context has more or less pricing power. Rollout starts with a pilot led by respected field leaders, not a mandate. Override reasons feed back into the model instead of into a compliance report. And we look hard at compensation, because no pricing program survives a comp plan that pays sellers to do the opposite. If your team would genuinely fight a system built that way, that is not a pricing problem. It is an operating model problem, and it is the actual thing that needs fixing first.

How long before we see anything?

Ten business days. That is the standard timeline from usable data to a completed Margin Opportunity Scan: a quantified value pool, a map of where margin is leaking and why, the share of your revenue under real pricing governance, and a CFO grade bridge from identified opportunity to realizable EBITDA. It is a paid diagnostic, deliberately, because it is rigorous enough to support an investment decision, not a proposal exercise. From there, a full transformation typically runs 12 to 16 weeks, and it is structured so the pilot proves the economics on real transactions before anything rolls out broadly, which means the first verified margin capture usually lands inside the first 60 to 90 days rather than at the end. The honest variable is your data. If you can produce 12 to 24 months of line item transaction history with cost, customer, product, and seller fields, the clock starts immediately. If you cannot, that is a finding in itself, and we will tell you before you spend anything.

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How We Engage

Three next steps, not one button

CEO or CFO, portfolio company

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VP Sales or commercial leader

Fifteen minutes with Shafohi
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