In the Auto Service, Repair, & Tire retail industry, mastering pricing strategies is critical for maximizing profit margins and driving sustainable growth. This guide reveals powerful pricing tactics for automotive parts, tires, and services, enabling retailers to outpace competitors and boost profitability. Discover how to leverage advanced analytics and implement strategic discounting to enhance financial performance and secure long-term success in the automotive retail market.

Leverage the power of revenue growth analytics and Price-Cost-Volume-Mix (PCVM) analysis to optimize your financial performance. Uncover key revenue drivers, assess pricing strategies, and identify growth opportunities with data-driven pricing insights.

One of the critical mistakes earlier in my Revenue Growth Analytics career was relying on internal experts to inform the building of "Price-Value Maps" (aka. "PVM") for our Products and those of key Competitors. It proved to be a costly mistake, and we ended up eroding Gross Profits and EBITDA as all of our Price List increases were heavily offset by increased Rebates, Promotional and Shopper Marketing spend.

It's easy for us to get caught in the hype surrounding the latest and greatest tech advancements. Currently, AI is at the forefront of this phenomenon (what Gartner calls "peak of inflated expectations"). While AI certainly holds transformative potential, companies must approach its adoption with a measured perspective, especially in the mid-market sector (think $100MM-$1B in revenues).

Two decades later, Promotion Effectiveness & Optimization is still a substantial business problem for companies; at least 50% struggle in this arena.

When we asked ~ 150 commercial leaders about their organization's Promotion Effectiveness & Optimization capabilities, the Consumer Goods industry emerged with a high score of 3.3 (a little better than Average). This is unsurprising since this is one industry where Promotional spending is routinely 15-30% of Gross Revenues and where the Trade Promotion Management, Effectiveness & Optimization (TPX) software industry grew the fastest.

Why Price Realization Matters: Key Findings from our Inaugural Revenue Growth Analytics Survey.

A company's ability to consistently measure and manage its Net Price Realization is a crucial, yet often overlooked, element of a robust Profit Growth Strategy.

Price Realization - the difference between your List Price and Actual Price (after discounts, rebates, and other incentives/concessions) impacts your bottom line in a significant way.

Over 125 commercial leaders have taken our Revenue Growth Analytics Maturity Quiz, which measured maturity/competency scores across three major areas:

1) Margin Analytics & Optimization

2) Promotion Effectiveness & Optimization

3) Sales & Customer Growth Analytics

The first question in the "Margin Analytics & Optimization" section asked respondents, "How frequently is pricing performance (net price realization) measured and reported to company leaders?".

Discover the power of Revenue Growth Analytics with our newly launched Maturity Scorecard, designed to assess your organization's capabilities in Margin Analytics & Optimization, Sales & Customer Growth Analytics, and Promotion Effectiveness & Optimization.

Take the 3-minute assessment and gain access to tailored recommendations for improvement, as well as an extensive library of free Revenue Growth Analytics resources, including Tableau dashboards and price elasticity models in R and Python. Don't miss out on this opportunity to elevate your Revenue Analytics capabilities and drive significant business impact.

It often amuses me that in the era of ChatGPT (and despite the countless books I have in my library on AI/ML), I've never used any Deep Learning model for any of my client engagements or prior advanced analytics leadership roles.

For 99.95% of data problems in traditional (non-tech) companies, Deep Learning (and any of its derivations like LSTMs, GANs, CNNs, etc.) are overkill at best and a complete waste of time (or not applicable) at worst.

Analytical fire drills and knee-jerk pricing actions are becoming increasingly common in the consumer goods industry. With intense competition and ever-changing customer needs, companies must be agile enough to rapidly adjust their strategies to remain competitive and deliver relative value to their consumers.

By creating a dynamic integrated performance deep dive, CPGs can identify specific areas of improvement to maximize efficiency while delivering high-quality products at competitive prices — all of which will help them stay ahead of the competition in today's market.

In the below quick guide, we'll explore the steps needed to build a reproducible and highly actionable (and impactful) performance deep dive that can help CPGs address Revenue performance shortfalls.

It's no secret that many retailers and distributors are struggling with suboptimal prices, leading to substantial profit losses or missed revenues.

But by developing a solid price-testing playbook, retailers and distributors can maximize profits without sacrificing sales.

You don't need to spend 12-18 months deploying an enterprise price optimization solution or waste a ton of CAPEX. You can start building your own semi-automated price-testing solution today at a fraction of the development times and costs.

If you're a Pricing or Finance executive looking for a way to improve your company's bottom line, read this 5-minute guide on how to build a sustainable Price Testing playbook.

Below are my top Revenue Growth Analytics quick wins that Distributors should implement (or right-size) to boost gross profits $ by 5-20% and increase liquidity.

At its very basic level, industry margin pools help you understand what share of the total profits goes to each supply chain participant, from Manufacturer, Distributor, to Retailer.

If you are a ~$1B Manufacturer or Distributor that spends ~ 15% of its Gross Revenues on Promotions & Rebates, every 50bps improvement in your Promo ROIs will drive +$0.75MM to your EBITDA. Let me describe the steps to take to enable these capabilities for your organization.

Have you ever offered a deep Price Discount in December in hopes of accelerating 4Q and YE target achievement, only to drive Unit Sales but suffer huge Gross Profit losses?

If you haven't tried #bayesian analysis to attack common business problems, I highly encourage you to explore it.

Companies' data science curve often starts with linear regression before a giant leap to ML within weeks or months (ensemble models, even some deep learning).

In pragmatic terms, the power of Bayesian modeling comes from being able to assign probability intervals to predictions.

Commercial Analytics, aimed at improving Gross Profits and Sales Productivity, doesn't have to be complex to drive the proper outcomes with Pricing and Sales teams.

𝐒𝐚𝐥𝐞𝐬 & 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐒𝐭𝐚𝐜𝐤 𝐑𝐚𝐧𝐤𝐢𝐧𝐠 is another simple yet effective Revenue Analytics technique to steer Sales behavior in the right direction and drive incremental Net Sales (and Gross Profits).

I often see Manufacturers and Wholesalers making the mistake of trying to revolutionize entrenched Customer habits vs. creating easy-to-use, pragmatic analytics solutions that Customers understand and care about.

This week, we'll dive into another foundational but influential Margin Analytics technique, the Gross Profit Growth Decomposition using raw Transactional Data.

This week, I wanted to show you another simple yet effective revenue analytics technique to steer sales behavior in the right direction and drive Gross Profits.