Can Distribution Pricing Managers Work Remotely?

There should be no reason to point out that the way we work has changed more in the three years since 2020 than it has in the 20 years prior. Even distribution companies – long held up as examples of companies who require large amounts of on-premise work – have turned to remote and hybrid work for certain types of employees. Remote work was once only the domain of a select few job titles but now it has gone mainstream.

Distribution pricing mangers play a huge role in the success of your company. Can they really work remotely and still create great pricing strategies and drive better margins?

The role of a distribution pricing manager has expanded in recent years as well. They once simply executed pricing inside of an ERP pricing matrix, but now they are responsible for analyzing marketing trends, conducting competitive research and sifting through customer buying patterns to determine optimal pricing that drives profitability. Pricing requires a lot of collaboration with all the teams inside of your company, from sales to finance to purchasing. It’s no surprise that this role has usually been seen as an “on-site,” role so that pricing managers can have access to cross-functional teams.

Yet two factors have made the possibility of remote work more feasible for pricing managers: new technology and a trend toward new acquisitions. With better web-accessible software platforms and data tools, pricing managers no longer need to be tethered to the office to get real time data. Data analysts are jumping on new collaboration tools such as Slack or workflow management. With large companies growing through acquisition, it has become much more common for pricing expertise to be centralized regardless of location. Technology and expanding locations have created a greater openness among distributors to allow pricing managers to work from anywhere.

Because of the great reader interest, we’ve had in this topic, we wanted to delve into this evolving world of remote work to better understand if it can align with the day-to-day responsibilities of pricing managers.

The Upside of Remote Work for Distribution Pricing Managers

Anytime you can add flexibility to your work environment, you improve your ability to attract top-level talent, reduce office costs and overheads and usually increase worker satisfaction.

Provide greater flexibility for work-life balance

Offering remote work options to pricing managers allows them to exert greater control over their schedules. This gives them great work-life balance as they can adjust their work hours and location to accommodate personal commitments and preferences. More control over their personal life  naturally leads to increased job satisfaction for pricing experts. Yet, many distribution leaders are uncomfortable offering this kind of flexibility. But do you really care where the pricing manager does her analysis if she is driving margins?

“Pricing managers who work from home can often get more done, and have fewer interruptions in their workday,” says Sarah Thompson, Director of Data Analytics at Alphatix Tool Parts Distributors. Working from home can even help pricing mangers adapt better to market changes. “By eliminating the distractions caused by coworker interruptions, you are able to maintain a higher level of focus and concentration on your pricing strategies. This allows an analyst to make real-time adjustments in response to new data and grab ahold of opportunities for bigger margins.”

Thompson underscores the significance of having the flexibility to work from home in terms of pricing changes in an ERP system. She explains, “I use web and cloud-based software that gives me the ability to log in and update pricing information anywhere I happen to be working. Working remotely provides pricing managers with the freedom to focus on strategic decision-making. The office environment can be a little restraining and many pricing managers find they can devote more energy to analyzing data, identifying trends, and optimizing pricing strategies to drive profitability while working remotely.”

“Working from home has been quite a transformative experience,” Thompson, who has been working remotely since the start of the pandemic, shares. “In many ways, it’s a blessing to have the flexibility and peace to focus on my work without the usual office distractions.” However, Thompson also acknowledges the flip side of the coin. “The drawbacks are significant too. The lack of social interaction can sometimes feel isolating. There’s also the missed opportunity for impromptu meetings with sales reps who often have valuable anecdotes and real market data about pricing to share. These casual interactions can’t be easily replicated in a virtual setting, and that’s a loss,” she admits. “The key is to plan out your meetings and interactions, so you aren’t working alone with your data.”

Hire talent from anywhere

It is exceptionally difficult right now to find an experienced price manager. A highly technical and domain-specific skillset combine with record unemployment makes it harder to find the right employee. If you add in geographical constraints, recruiting becomes more difficult. If you can hire from anywhere and not just in your branch or HQ locations, you can expand your talent pool to individuals with a wider variety of skills and experiences than you might find in your own backyard.

Thompson has some experience to share here. “When it comes to hiring skilled pricing managers – I mean the best of the best – I strongly recommend that distributors broaden their horizons and look beyond their local area,” advises Thompson. “You cannot always find the best person for the job in your local market and by looking for a remote employee you open up the possibility of finding highly talented individuals who can bring new perspectives and maybe some innovation.”

Thompson says it’s important to bring in new people and new ideas from outside the confines of your geographical limitations. She believes that when you can expand your candidate search beyond your own city, you can reach into a wider pool of talent and expertise. “You can get top-level skills from a nation-wide talent search instead of hiring the best you find locally.”

Cost savings for both pricing managers and organizations

There are hard costs associated with office spaces and office equipment. Letting more workers operate from outside the office means you can reduce certain space and overheads. Pricing managers can also save money by working remotely. Commuting, meals and other expenses are reduced when working from home. The average remote worker saves $6,000 per year on a variety of costs, none of which contribute to their well-being or company productivity. Want to give your pricing manager a $6,000 raise without spending anything more? Let them work from anywhere.

Don’t undervalue the cost-saving aspect of remote work, Thompson highlights, “Both distributors and pricing employees can save significant expenses by embracing remote work. Reduced commuting costs, office space requirements, and other overhead expenses contribute to improved profitability for everyone.”

“The indirect cost reductions for employees are often overlooked but hold significant value,” says Thompson. “What is the value of eliminating an hour or more spent stuck in traffic? Think about the gas saved, the number of oil changes avoided, and the wear and tear on vehicles. These seemingly small savings add up over time.”

Thompson warns not to underestimate the stress of the daily commute. She states, “Imagine the positive shift in productivity when a grateful employee can start their day promptly at 7 AM instead of spending that time in traffic. By removing the hassle of commuting, employees can immediately focus on their work, creating a pace for a productive day ahead.”

Addressing the Challenges Faced by Remote Distribution Pricing Managers

Of course, despite the many benefits, there are many jobs in a distribution company that would be impossible to do remotely. Warehouse workers must stock and pick-pack-ship. Shipping and dock employees must be on schedule with trucks or risk detention fees. Even inside sales for certain industries benefit from proximity to specialized stock. Pricing managers face their own sets of challenges while working remotely.

Communication and collaboration challenges

Despite the improvements in remote working tools like Zoom, Microsoft Teams and Slack, remote distribution pricing managers may still face challenges with effective communication and collaboration. There is something about being able to lean over your cubicle wall and ask a purchasing agent about margins. And sales reps might like dropping in on important deals. It is important to develop cultural norms as well as facilitate adoption of communication tools and project management software to facilitate collaboration with real-time messaging, video conferencing, document sharing and workflows.

“Remote working and collaboration technology have revolutionized the way pricing managers can effectively collaborate with sales reps and purchasing agents, regardless of their physical location,” says Brandon Watson, VP of CloudSuite Solutions at Tridex Systems. “With the right tools and platforms in place, we can bridge the gap between remote teams and create a seamless working environment. Through virtual meetings, real-time communication, and shared document collaboration, remote pricing managers can engage with their colleagues as if they were sitting right next to them in the office. You’re aiming for efficient decision-making, better alignment, getting everyone on the same page, regardless of distance.”

Data security and confidentiality

Pricing managers are responsible for some of the most sensitive data in the business. You are looking at pricing, contracts, billing information, contact information and more. If you’re going to let your pricing managers work from anywhere, you need to make sure they are working securely. With some preparation there are some basic procedures to minimize risk. Implementing a virtual private network (VPN) to establish secure connections and encrypt data is a great start. Also, just enforcing policies around passwords, email safety, phishing, multi-factor authentication and more can help you secure your data.

“Protecting sensitive data is paramount, especially when working remotely,” says Watson. “VPNs and robust data governance practices can help safeguard our information and ensure its integrity.” Watson explains that VPNs essentially create a secure tunnel for data transmission, encrypting it and shielding it from prying eyes. Coupled with effective data governance policies that define access controls, data classification, and monitoring, distributors can establish a strong security foundation that frees remote workers to handle sensitive and important information. “Remember, data security is not a luxury but a necessity in today’s digital landscape. You should consider these tools regardless of the number or type of employees you have working remotely.”

Performance monitoring and accountability

This may be the most important hurdle to cross for many distributors. One of the most common complaints we here from pricing experts is that their managers still don’t trust the data and want to manage pricing from the gut. This can carry over into wanting to have the pricing managers close at hand to manage by walking around and talking instead of setting clear goals and responsibilities. The fact is, without goals and accountability, it doesn’t matter where the pricing work gets done, you won’t have a way to measure it. No matter where you work, you need to establish clear goals, metrics and have reporting mechanisms in place. If you are concerned about accountability, you don’t have a remote work problem, you have a goal system problem.

“Implementing effective business intelligence and workflow tools helps you manage with accountability,” says Watson, “and it increases your efficiency. Distributors are getting better about using BI to track performance, monitor project progress, and provide valuable insights into work even when done remotely.” When distributors use data-driven decision-making and streamlined workflows, they can optimize their operations, maintain accountability, and drive productivity, regardless of employees’ physical locations. “It is important to customize your system to match your work so that you are providing user-friendly solutions that align you’re your wider goals and values. It just makes the transition to remote work smoother and more efficient.”

Insights from Lenovo’s Future of Work Study

If you need any more convincing to let your pricing managers try remote work, Lenovo’s Future of Work and Transformation Study has revealed some interesting findings about the evolving work landscape. Here are the key takeaways:

• Job Satisfaction and Productivity: The study found that 70 percent of global employees reported higher job satisfaction when working from home. Additionally, 56 percent felt more productive in a remote work environment.
• Preference for Remote Work: Employees today value the flexibility that remote work offers. In fact, 88 percent of participants from large companies expressed their desire to work from home (WFH) or work from anywhere (WFA) at least some of the time.
• Management Perspective: Encouragingly, management is aligned with the benefits of remote work. The study found that 83 percent of IT decision-makers (ITDMs) from businesses surveyed expect post-pandemic work to be remote at least half the time.
• Data Security Challenges: Data security emerged as the top concern among IT departments, according to the study. IT decision-makers ranked it as their most time-consuming challenge. Interestingly, the survey also revealed that ITDMs feel more prepared to deal with another pandemic than they do with security threats.

The data underscores the positive impact of remote work on job satisfaction and productivity, highlighting employees’ preference for flexibility. It also emphasizes the need for organizations to prioritize data security and explore innovative solutions.

Best Practices for Effective Remote Work for Distribution Pricing Managers

A lot of distribution companies have concluded that the benefits of remote work outweigh the negatives. If you want to try it out with your own pricing managers, here are some best practices we recommend.

Establishing clear expectations and guidelines

Just because they work remotely doesn’t mean you cannot set expectations for working hours, availability and deliverables (e.g., new pricing proposals, updates, catalog deadlines, etc.). You can also set expectations for the communication channels they will use, response times and meeting schedules. Some companies ask remote employees to have their Zoom on for “office hours,” so sales or purchasing employees can drop in for questions. The clearer your expectations are communicated and documented, the more secure you will feel in their ability to achieve success remotely.

Matthew Turner, Founder of Boston Turner Group, emphasizes that the preparation and planning you should already be doing to have a well-run company also makes your remote employees more effective as well. “Goal setting, OKRs, and clearly defined work expectations are essential pillars that drive the success of any distributor, particularly in the context of remote employees,” says Turner. Your job is not only provide a clear direction and purpose for individual and team efforts but also nurture trust and productivity across the whole company. “When everyone is aligned towards common objectives and understands what is expected of them, it creates a sense of focus and unity that propels the business forward. Everyone, remote or on premise, can greatly from these practices because they provide structure and clarity.”

Encouraging regular communication and virtual interactions

One of the biggest issues with remote work is isolation. Create a culture that favors open and frequent communication. Video conferencing and messaging are easy tools to add into your work mix. Some systems even have virtual white boards and screen sharing to make brainstorming and meetings as effective as face-to-face meetings.

“It’s very important that you don’t ignore the psychological aspects of remote work,” says Turner. “Having regular chats and video meetings can help remote workers feel more connected.” You also want to encourage them to get facetime with real human beings when possible. “I usually work from my home office, and I know how easy it is to never leave your work when it is always just a few steps away. I like to get out into some coworking areas like my local library or coffee shop just to be around other people. I think working in a variety of spaces with other people also encourages creative thinking.”

Providing necessary technology and support: First and foremost, make sure you are using one of our recommended price optimization solutions. This will ensure that your pricing managers can be effective from anywhere and do their roles effectively. Give them data analysis tools, access to management software, communication tools, IT support and more so that they can be as efficient as your on-premise employees.

“Pricing managers are some of the biggest collaborators in your entire organization,” says Mike Bernard, Chief Marketing Officer of Vendavo. “Pricing mangers interact with sales, marketing, executive leaders, product and purchasing, finance and almost every other area of the business. So, it is critical to support them with technology that allows them to collaborate effectively.” Bernard describes price optimization technology like Vendavo as a kind of, “glue,” that connects these departments regardless of where they work. “Sharing drilldowns, automated alerts and reports, rebate program updates, margin analysis and more are very easy with Vendavo. So, pricing managers who work remotely have a set of tools to collaborate easily. With a partner like Vendavo, pricing managers can focus more of their time on driving team discussions that ultimately lead to higher profits.”

Bernard offered a very common example of how technology creates better collaboration – discount approvals. “It is crucial for salespeople to have knowledge of the target price, approvable price, and walk away price during negotiations,” says Bernard. “But the way this is handled in many distribution companies is to lean over the desk of the pricing manger.” This is far from effective. Certainly, you want your sales reps to make informed decisions and propose pricing that maximizes profitability. But you want these decisions to be facilitated with robust technology and accurate data. “Leaning over a desk leads to pricing decisions that are a little too easy to approve and can result in missed opportunities for better deals. By providing sales teams with readily available approval procedures in an actionable format, distributors empower their salespeople to step out of their comfort zones and negotiate more effectively. This saves the pricing manager a lot of time because reps are using the pricing guidance in the system.”

Promoting work-life balance and employee well-being

Work-life balance goes two ways. Working remotely can blur lines between work and personal life. Go out of your way to encourage employees to set boundaries in both directions. Your best employees can face burnout when working from home because they don’t have a clear break from their work environments. But other employees can let personal lives creep in as well. Provide them with education on managing stress and promoting wellness just as you would an in-person employee. The more supportive you are, the more appreciative, successful and loyal they will be.

Evaluating performance and adjusting strategies as needed

Do you regularly review and evaluate the performance of all your employees? No matter where they work, employees like having measurable goals and well understood guidelines for behavior. Regular employee reviews promote a culture of continuous improvement and adaptation but also make employees feel connected to your vision.

“You should be offering regular performance evaluations of your employees no matter where they work,” says Turner. “Performance evaluations facilitate open and constructive communication between employees and their supervisors. Both parties have an opportunity to provide feedback, discuss challenges, and offer suggestions for improvement.”

Turner adds that performance evaluations serve to remind everyone what is important in your company. “It’s a way to help motivate your employees and keep them all rowing the boat in the same direction.”

Ready to Go Remote?

Remote work has proven to be a viable option for distribution pricing managers. Many factors over the last three years have accelerated the adoption of remote work across various distribution roles, and pricing management is no exception. It has become evident that remote work can be effectively implemented without compromising productivity, collaboration, and overall performance.

While remote work offers flexibility and the ability to work from anywhere, there are certain aspects of pricing management that may benefit from in-person interactions, such as team brainstorming sessions or strategy discussions. Finding the right balance between remote and in-person work can reinforce good decision-making and create a collaborative environment between pricing mangers and other employees.

Embracing remote work as a strategic advantage is a necessity. It allows distribution pricing managers to leverage technology, access real-time data, and adapt quickly to market dynamics. Remote work enables pricing managers to stay connected with stakeholders, collaborate seamlessly, and make data-driven decisions efficiently.

Additional Resources and Next Steps

If you are considering remote work for distribution pricing managers, here are some valuable resources and actionable steps to get you started:

1. Articles and Guides:

• “A Guide to Managing Your (Newly) Remote Workers,” by Harvard Business Review – This article provides insights and strategies for effectively managing remote teams, including pricing managers.
• “How to create a remote team culture,” by Trello – This resource offers practical tips for creating a positive remote work culture and fostering collaboration within a distributed team.

2. Tools for Remote Work:

• Vendavo’s pricing and selling solutions for distribution
• Tridex System’s approach to Infor Cloudsuite Distribution and Infor Workflow
• Communication: Slack, Microsoft Teams, and Zoom are popular communication platforms that facilitate real-time collaboration and virtual meetings.
• Project Management: Asana, Trello, and Jira are project management tools that help with task tracking, timelines, and team coordination.
• Document Collaboration: Google Workspace (formerly G Suite), Microsoft 365, and Dropbox Paper enable seamless collaboration on documents, spreadsheets, and presentations.

3. Actionable Steps:

• Will it work for you? Evaluate the entirety of your pricing management tasks and test out which aspects can go remote.
• What do you expect? Don’t work blindly, you need to establish clear expectations, goals, and deliverables for remote pricing analysis. Document your guidelines regarding availability, response times, and communication methods.
• How will you support your pricing manager? Ensure that pricing managers – and all remote workers – have access to the necessary technology, software, and training to perform effectively.
• How can you help? Go out of your way to schedule regular check-ins, virtual team meetings, and collaboration technology because working remotely can be isolating.
• How will you improve? You need to regularly review the work and success of all your pricing managers, especially remote workers. Ask for feedback from the team and adjust when needed.