Pricing & Margin Consulting


How Top Line Profits Can Help You

"We got up 2.5 to 3pts. Got it right at 30% margin and we've held it there since early to mid 2022. And we're still at that and going strong. Like you said, 2022 was our best year ever!" ~ Charlie Kennedy, Co-owner Kennedy Office Supply

No two dealerships are exactly alike, so why should they all follow the same pricing strategy?

Many pricing programs promise a specific gross profit percentage or rely on a one-size-fits-all approach. The reality is that every dealership has different customers, different buying habits, different contract structures, and different pricing objectives. What works well for one dealer may produce very different results for another.

My approach starts with understanding your business. Using your current cost files, previous twelve months of sales history, and industry-standard market pricing, I analyze your pricing structure and contracts to make pricing recommendations based on how your customers actually buy—not just industry averages.

Rather than relying solely on traditional cost-plus formulas or percentage-off-list pricing, I evaluate where each item is priced within today's marketplace. My market-based pricing approach is a key part of every recommendation I make, helping you remain competitive while supporting your long-term margin objectives.

I've developed proprietary analytical tools specifically for the independent office supply industry that allow me to evaluate pricing, contracts, historical purchasing behavior, and market data at a level that simply isn't practical through spreadsheets or manual analysis alone. Those tools support my consulting and help me deliver pricing recommendations tailored specifically to your business.

Whether your goal is to increase margins, maintain your current profitability, become more competitive, or improve pricing consistency across your customer base, we work together to establish margin goals and build a pricing strategy designed to help you achieve and sustain them.

My consulting services include:

  • Contract pricing and updates
  • Customized standard contracts
  • Customized matrix pricing plans
  • Pricing strategy development
  • Margin improvement analysis
  • Ongoing pricing management

Before implementing pricing changes, I model my recommendations using your previous twelve months of sales whenever possible. This allows you to see how proposed pricing changes are expected to impact your margins before they're implemented, giving you greater confidence in the decisions you make.

Pricing isn't simply about charging more or charging less. It's about determining the right selling price for each item based on today's marketplace while supporting your long-term business objectives.

The financial impact of even small improvements can be significant. If your dealership has $10,000,000 in annual sales, a sustained two-point increase in gross profit margin represents approximately $200,000 in additional gross profit every year—or $1,000,000 over five years. The table below illustrates the long-term value of even modest margin improvements. How much additional profit could your business generate with a pricing strategy built specifically for your customers?

5 Year Additional Profit Projection - Example of a 2 Point GP Improvement (26%-28%) Based on Yearly Sales

  1st Year 2nd Year 3rd Year 4th Year 5th Year Total 5 Years
$5,000,000 in Yearly Sales $100,000.00 $100,000.00 $100,000.00 $100,000.00 $100,000.00 $500,000.00
$7,500,000 in Yearly Sales $150,000.00 $150,000.00 $150,000.00 $150,000.00 $150,000.00 $750,000.00
$10,000,000 in Yearly Sales $200,000.00 $200,000.00 $200,000.00 $200,000.00 $200,000.00 $1,000,000.00
$15,000,000 in Yearly Sales $300,000.00 $300,000.00 $300,000.00 $300,000.00 $300,000.00 $1,500,000.00
$20,000,000 in Yearly Sales $400,000.00 $400,000.00 $400,000.00 $400,000.00 $400,000.00 $2,000,000.00