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17 Steady pricing provides a much better environment for developing long-term customer relationships. Such stability in the face of lower cost competition also ensures you remain in control of your revenue. "Never be the guy who gets mad at the other distributors in the market who are always cutting price, and then does the same thing to keep up," Wade says. "When you do that you let someone you have no respect for run your business." Which isn't to say there's never a good point to cut price. Lowering rates on seasonal items or obsolescent parts is a good way to eliminate dead inventory and free up space for more components with higher profi t potential, says Straszewski. As are sales on high-moving products that require additional, higher margin related components. "Maybe you put an airbag on sale because you know the people who are looking for an airbag also will need shocks," he says. The key is moderation. Net sales and gross profi t do not grow at the same rate, and slicing a price to move more parts doesn't always result in a better bottom line. Especially not when offered to everyone. This is where a pricing matrix comes in handy. By categorizing customers within a matrix and determining your operational expenses in serving each group, Reynolds says distributors can build a matrix that clearly identifi es product lines where multiple retail prices can be offered without risking gross profi t. "A matrix can be as complex or simple as a [distributor] wants it to be. It really is up to them and how they want to break down their customer base," he says. Szabo says he checks his price matrix almost daily, and makes sure to review it after any vendor price change and in situations where the retail market ap- pears to be shifting. This ensures Ohio Diesel Fleet Supply's prices remain in line with its internal and external goals at all times. Reynolds advises all distributors to do the same, and says Karmak offers train- ing to guide distributors through regular matrix restructuring to ensure their W W W . T R U C K P A R T S A N D S E R V I C E . C O M M a r c h 2 0 1 6 | T R U C K P A R T S & S E R V I C E See how you can add hidden suspension repairs www.hunter.com/tps Untitled-6 1 2/16/16 1:27 PM Cover Story