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