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Leveraging Pricing and Incentives to Increase Margins with Emily Yang from Diodes – Podcast Episode 14

by David Johnson , Sr. Director Product Marketing June 13, 2019

In Episode 14 of the Revenue Execution Podcast Series we continued our conversation with Emily Yang, VP of Worldwide Sales and Marketing at Diodes and discussed their new pricing strategy, their use of channel incentives and how Diodes treats compliance.  Although these topics may not be directly related, they each have an impact on margins and revenue.  By continuously making improvements in these areas, Diodes is able to grow revenues on a consistent basis.

In the third part of our three-part series with Emily, we discuss:

Diodes Updated Pricing Strategy

Diodes recently switched from a cost based pricing model to resale based pricing.  There old strategy meant they were missing opportunities and lost visibility into the market.  Additionally, this older model was have a negative impact on gross margins.  With resale based pricing they have improved gross margins and have a much better understanding of the value their products have for their end customers.

Diodes Channel Incentive Programs and How They Determine Success

Diodes leverages a variety of incentive programs.  Their MDF program is used for training partners, co-marketing and events.  They create a Market Price Program for key customers that allows them to deliver a discounted price to their end customers while also ensuring a satisfactory margin for their partners.  Their current rebate programs are relatively new but Emily has noticed that as the program grows their manual tracking of the programs is getting more difficult.

While they run a diverse group of incentive programs they need to monitor them closely to make sure they are maximizing the impact of their incentives.  They analyze results across programs and compare programs to make sure they are eliminating ineffective programs and emphasizing the successful programs.

Compliance

Emily looks at compliance holistically. They look at regulatory compliance, contractual compliance, and internal compliance together.  With Model N they have they data trail they need to feel confident that they are within compliance.  Additionally they are able to streamline their audits and enforce procedures.  This has allowed them to create efficiencies and improve their internal processes.

Conclusion

Diodes has achieved a continuous growth that very few companies have been able to attain.  The strategies that we discussed with Emily were instrumental to that sustained success.  If you want to learn from a veteran that has been able to drive success for over three decades, listen to this episode of the Revenue Execution podcast.  Emily has great insights into the market and provided us with a lot of great ideas on what it means to use revenue and channel data management solutions like Model N’s Channel Cloud and Channel Data Management (CDM) as competitive differentiation.  Click here to listen to the podcast.

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