May 24, 2022

Special Pricing Collaborations Explained

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Manufacturers and distributors must have as smooth a relationship as possible to guarantee that inefficiencies are rapidly corrected, processes are aligned, and communication is open and regular. This is especially true when a collaborative arrangement between a manufacturer and a distributor to supply products to a certain market segment at a discounted price has been made. These agreements are otherwise known as special pricing collaborations.

This blog intends to highlight the reasons why they exist and the challenges they can present. By overcoming these issues, all parties involved can gain competitive advantages over their rivals through the formation of strong relationships.

Special pricing agreements are usually established between a distributor’s branch or pricing department salesperson and the manufacturer’s field sales team.

The agreements negotiated will vary depending on the industry and materials, but usually, special pricing agreements come in the form of a percentage discount of the given price, a fixed amount per unit, or support to a guaranteed profit margin.


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