By Jim Holland, Sr. Product Marketing Manager
Model N recently hosted a webinar with Chris Cleary, Service Director, Channel Sales Strategies from SiriusDecisions. Chris and Chanan Greenberg, SVP and GM of Model N’s High Tech products discussed the changes and influences in how companies are managing their gross to net.
TAKEAWAY #1 – Price Execution Hasn’t Been Successful in All Markets
Chanan shared, “In High Tech, there are very few examples of successful price execution improvement stories due to three areas. They include:
- High price volatility
- Less predictable cycles
- Very high volumes of “special price” negotiations.
Chanan continued, “15+ years ago multiple companies entered the market with a similar promise – there is an easy way to tweak your pricing to increase revenue and margin. However, in high tech 30-40% have tried and not had consistent success.”
In some industries there is credible evidence this has delivered value. These industries included Process Manufacturing, Distribution, Chemicals, Hospitality & Travel The underlying premise was that Price Execution itself was already managed well by existing tool
TAKEAWAY #2 – A Single Gross-to-Net Continuum
In the past 18-24 months some of the largest high-tech companies have embarked on a new wave focused on managing all functions impacting net revenue and net price as a single continuum. These elements include:
TAKEAWAY #3 – The Rearview Mirror Effect
Chris shared, “Companies lack significant channel visibility. It is the old way of doing things. In the new digital channel, as technologies evolve, it’s like a rear view mirror. High performing companies are shifting to different lenses for metrics into the channel.”
To listen to the complete webinar From Analyzing to Managing Gross to Net and hear more from Chris and Chanan, click here. To learn more about SiriusDecisions Channel Sales offering, go here. If you’d like to chat with someone at Model N about better managing your high-tech or semiconductor gross-to-net go here.