As increasingly complex special price agreements are created in an already huge and competitive market, the ability to effectively maintain price flexibility between manufacturers and distributors has become essential. The daunting task of creating and managing PPS deprives manufacturers and distributors of the opportunity to assess the business opportunity, volume or even prices negotiated for each agreement. Each distributor has a number of loyal accounts with deep connections. Research suggests that these accounts remain with the merchant if the manufacturer breaks down the relationship. A mistake endangers sales and market share. Clarifying the situation of account ownership takes time. The dismissal of wholesale distributors risks the existing business. In a free-for-all Old West, where distributors test other people`s accounts with special service offerings and price-based attacks, unattracted channel activity causes massive channel conflicts and long-term headaches for the provider. Manufacturers offer distributors special pricing agreements (SPAs) to meet a wide range of end customer and situational market needs. SPAs are widely used due to their ability to provide price flexibility to secure large contracts. With the popularity of SPAs, manufacturers must create, manage and manage thousands of unique SPA agreements through their distribution channel. Due to the large volume of agreements and significant discounts, PPS can sometimes be the most expensive part of manufacturers` revenue if the process is not properly managed. However, the use of the software offers a significant performance advantage for SPAs.

Our review of tracking/transferring software is not part of our research, however, specialized bolting software is increasing in sales and has significant benefits, including:1) Centralizing processes for quality, law enforcement, and improving financial performance2) Creating a trade repository for analysis and management actions3) Increasing transparency throughout the chain Our work on special pricing agreements is ongoing, but this research highlights the overwhelming fact that using specialized software at special prices gives the company a considerable competitive advantage. However, we found a significant difference in the execution of special pricing agreements, as a percentage of cost of goods sold, for businesses based on their tracking and remittance systems. All of this adds to a complex management challenge where the cost of managing special prices can seriously compromise the margin advantage that the special price agreement was originally supposed to provide. Distributors in our industry are reporting a virtual explosion in spa use. One distributor said his organization has grown from a few dozen SPA agreements in 2005 to more than 300 today. And they continue to accumulate. I believe that some of these agreements are the result of the economic turmoil of a few years ago and that others serve as vehicles to promote strategic sales. .