Distributor Pricing Strategy for Performance Incentives PPT

This PPT slide, part of the 68-slide Proposal for Organizational Restructuring (Big 4) PowerPoint presentation, presents a pricing strategy aimed at motivating distributors through a structured approach. It highlights the relationship between unit price and sales volume, indicating how pricing adjustments can incentivize performance. The graph illustrates 2 key time frames for large distributor sales, marked at 4 and 6 months, with unit prices plotted against varying sales volumes.

The green line represents the base pricing, while the dotted red lines indicate potential adjustments of -3% and -6% for different sales volumes. This visual representation suggests that as sales volume increases, there are opportunities to reward top-performing distributors with more favorable pricing. The terms "small volume prices" and "KAM pricing" are noted, indicating specific pricing tiers designed for different distributor performance levels.

On the right side, several pricing issues are outlined for consideration. These include evaluating competitor pricing, preventing conflicts between key account and distributor pricing, and providing incentives for growth. The emphasis on simplicity in the pricing structure is notable, suggesting that a straightforward three-tier pricing system could be effective.

Overall, this slide serves as a strategic tool for organizations looking to enhance distributor engagement and performance through targeted pricing mechanisms. It emphasizes the importance of aligning pricing strategies with distributor metrics, ensuring that top performers are adequately rewarded while maintaining competitive positioning in the market.

This slide is part of the Proposal for Organizational Restructuring (Big 4) PowerPoint presentation.

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