Smart Pricing Strategies that Drive Growth and Maximize Profit with Joshua Lowe

Joshua Lowe is a solution-focused pricing professional with a proven track record in pricing (10 years) and pricing transformation (3+ years). He also has an expertise in implementing and utilizing PriceFX, a cloud-native pricing management software.

In this episode, Joshua discusses the evolution of pricing in the auto parts industry, explaining how his company is transitioning from traditional cost-plus pricing to more market-based and value-driven strategies. He highlights the role of data analytics and predictive modeling in optimizing pricing decisions while maintaining fairness and customer retention.

Why you have to check out today's podcast:

• Learn how a major industry player is shifting from cost-plus pricing to market-based and value-based approaches.
• Discover how analytics and data science shape pricing strategies, ensuring competitiveness and profitability.
• Understand why leaving some value on the table fosters long-term customer relationships and repeat business.

"You've got more pricing power than you might realize."

- Joshua Lowe

Topics Covered:

01:31 - Joshua describing his journey into pricing

02:55 - Clarifying that Napa Auto Parts is a wholly owned subsidiary of Genuine Parts Company and sharing why he has stayed with Napa Auto Parts

04:27 - How his pricing strategies not only capture value but also reinvest in growth and detailing his role in setting nationwide retail, wholesale, and resale pricing frameworks

06:37 - The evolution of market segmentation in pricing, highlighting shifts between regional and nationwide pricing models and the factors influencing those changes

08:53 - Explaining customer segmentation in pricing, emphasizing the importance of transaction data, value drivers, and willingness to pay

11:27 - Pricing strategies based on delivery distance, emphasizing relationship-based pricing over cost-to-serve

13:09 - Explaining product segmentation and how Napa Auto parts sources products

15:56 - How cost increases from suppliers generally flow through their own pricing

17:03 - The role of cost-plus pricing in the industry and its gradual shift toward market-based and value-based pricing

21:31 - How Napa Auto Parts structures pricing

24:59 - Joshua's best pricing advice

Key Takeaways:

"There's a lot of price moves that you use in pricing to extract value, but a lot of times too, you're trying to figure out ways to reinvest those wins back into sales so that you can grow." - Joshua Lowe

"You never try to extract a hundred percent of the value of any single transaction because you might actually start losing customer retention over time. You want to leave 10, 20% on the table. I've always kind of kept that in the back of my mind as we do certain activities of how we keep the fairness in play as we make pricing actions." - Joshua Lowe

People/Resources Mentioned:

• Gates Corporation: https://www.gates.com/us/en.html
• Genuine Parts Company: https://www.genpt.com/
• Napa Auto Parts: https://www.napaonline.com/

Connect with Joshua Lowe:

• LinkedIn: https://www.linkedin.com/in/joshua-lowe-42034746/

Connect with Mark Stiving:

• LinkedIn: https://www.linkedin.com/in/stiving/
• Email: mark@impactpricing.com