Thomas R. Cutler, president and CEO of TR Cutler, Inc. warned the lack of pricing comparison and routinized purchasing from distributors and vendors are the proximate causes of lost margin. Without big data clarity there is no way to know if the price paid is fair or competitive. Cutler discussed how IIoT (Industrial Internet of Things) is misunderstood by most small and mid-sized manufacturers in the recent issue of IoTNow. Read the IoTNow article here.
Cutler discovered a new low-cost provider geared toward the small and mid-sized manufacturer: ManufacturingPower. The cost effective annual SaaS (Software as a Service) fee performs comparative SKU (Stock Keeping Unit) pricing. Culling these data points was far too time consuming and inaccurate because an inherent secrecy persisted. Seeing what others are paying for the same items allow a sense of fairness, and more importantly captures a few points of profit margin. Seventy-eight percent of manufacturers have less than 50 employees; a point or two of recouped pricing margin can increase wages, pay for health insurance, win new business, and keep current customers.
When cost recovery can be demonstrated in a 30 day period, the ROI value proposition is a no-brainer. Some months the saving will be more, some less. The ability to KNOW what others are paying for the same SKUs is essential; these data inform even the smallest manufacturer whether money is being left on the table or if a fair price is being paid.
About TR Cutler, Inc.
Thomas R. Cutler is the President and CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., the largest manufacturing communication firm worldwide with four dozen industry experts and thought leaders on staff. Cutler is celebrating the 21-year anniversary of the Manufacturing Media Consortium.
Cutler has authored more than 7,000 articles for a wide range of manufacturing periodicals, industrial publications, and business journals. Cutler is the most published freelance industrial journalist worldwide, and more than 4200 industry leaders follow Cutler on Twitter daily at @ThomasRCutler.
Company Name: TR Cutler Inc.
Contact Person: Thomas R. Cutler
Email: Send Email
Address:3032 S. Oakland Forest Dr. S-2803 Unit 2803
City: Fort Lauderdale
Country: United States