In this recorded training seminar, we explain the concept of price segmentation and why it's such a powerful and important tool. We explore the essential process and even walk through a step-by-step exercise, building an example price segmentation model from scratch.
It can be difficult to know if your price segmentation model is as effective as it should be. This 21-point diagnostic assessment helps you measure how good your model really is and uncover potential areas of improvement.
Use this example visual presentation to inspire and aid your efforts in explaining the concepts of price segmentation to others inside your organization.
And this is why you should perform a proper supplier segmentation - to determine the role in helping to deliver value to the end customer a supplier provides.
Suppliers who are vital to your organization need a higher level of engagement. By classifying each of your suppliers using pre-agreed criteria, you can decide upon the appropriate level of attention needed to ensure that they deliver superior service/products.
Supplier segmentation is the process of dividing suppliers into distinct groups based on needs, characteristics, or behavior. This process incorporates:
For this type of items, e-auctioning and catalogs are the best way to redirect responsibilities either directly to suppliers or to internal customers that are requisitioning the goods.
specificity of the offer: whether the supplier is offering a unique or customized product/service or an off-the-shelf one.
Priority 1 should include a small number of strategic suppliers as they often supply high-value and low-volume goods or services vital to your business operations. They are helping you grow your business by making investments in technology and new product development, and therefore they are high-risk and should be monitored closely. ...
On the flip side, there are items with high risk but low profitability. Here, the strength is in the hands of suppliers as they can drive prices upwards.
One of the questions new business owners ask me all the time is what happens if someone can’t afford their offering but still needs help. There are two answers to this.
You have multiple streams of income. The final reason why you want to create offerings at different price points is it provides you with multiple streams of income. If one source isn’t providing, another one picks up the slack. Additionally, you meet clients and customers at different parts of their journey which leads to more business revenue ...