Impact Pricing Unlocking Value in Distribution: Effective Pricing Systems Explained with Jared Smith
Jared Smith is the CEO of PriceSmith, a consulting firm specializing in pricing strategies for distributors and light manufacturers. With a background in pricing systems from Vendavo and experience as an adjunct professor at Oklahoma State, Jared brings a wealth of knowledge to the table. He is passionate about helping companies optimize their pricing strategies to capture more value.
In this episode, Jared shares his journey from Frito-Lay to leading pricing innovation in the B2B distribution space. Together, they explore the key distinctions between B2B and B2C pricing models, especially the negotiation-heavy and data-rich nature of distribution.
Why you have to check out today’s podcast:
- Learn about the differences between B2B and B2C pricing strategies.
- Understand the role of pricing systems in managing large SKU portfolios in distributorship.
- Discover how to effectively segment customers for better pricing strategies.
“Invest in your master data and keep chipping away at it. Start with 80/20 of your products and get that right.”
– Jared Smith
Topics Covered:
01:42 - Jared shares how he got into pricing after his MBA and experiences at Frito-Lay and in B2B distribution.
02:57 - Discussion on the differences between B2C and B2B pricing, including transparency and data access.
06:06 - Challenges in understanding why customers buy and the limitations of data analytics.
12:55 - Jared explains his focus on distribution and the unique challenges it presents.
14:40 - Discussion on the relevance and limitations of cost-plus pricing in distribution.
19:17 - Exploration of how to implement good, better, best pricing in distribution.
25:28 - Discussion on whether distributors publish prices or rely on quotes for transactions.
26:33 - Jared shares insights from Uber experiences and how they relate to distribution pricing.
31:27 - The impact of customer loyalty on pricing strategies and potential risks.
32:55 - Jared's key piece of advice on investing in master data for better pricing strategies.
33:58 - Connect with Jared.
Key Takeaways:
“Distribution is an amazing thing. Obviously, it's worldwide. And the simple fact of it, it has two very unique aspects. The first one, a lot of SKUs. And then, the second one is that you have a lot of customers.” – Jared Smith
People/Resources Mentioned:
- PriceSmith: https://www.pricesmith.com/
- Vendavo: https://www.vendavo.com/
- Oklahoma State University: https://www.okstate.edu/
- Pepsi: https://www.pepsi.com/
- Frito-Lay: https://www.fritolay.com/
- Coca-Cola: https://www.coca-cola.com/
- Apple: https://www.apple.com/
- LG: https://www.lg.com/
- Uber: https://www.uber.com/
- Lyft: https://www.lyft.com/
Connect with Jared Smith:
- LinkedIn: https://www.linkedin.com/in/jaredpaulsmith/
- Email: jared@pricesmith.com
Connect with Mark Stiving:
- LinkedIn: https://www.linkedin.com/in/stiving/
- Email: mark@impactpricing.com