Where should executive managers start in evaluating their sales channel pricing strategy?
Your channel pricing strategy and the individual elements of your channel pricing plan must first be weighed according to the likelihood that they can help you achieve your values and business goals, as well as the expectations of end-user customers. If channel pricing is not aligned with values and business goals, chances are you’re missing opportunities to use channel compensation to more effectively motivate channel behavior and thereby achieve better financial results in the market. Can and do all channel pricing programs influence dealer/distributor behavior? Yes, and be careful what you ask for. When you use a channel compensation plan to tell your channel partners what to do, chances are they’ll do it. And that includes changing their behavior for good or for bad to achieve the results you say you’re compensating them for. For example, if you tell a channel partner to train all of his sales people on your product lines in order to receive a certain level of compensation, he’ll c
