How To Manage Last Bite ?

As a marketer especially who work on sales operation, certainly ever faced with price increase. One important part in price increase is “how to manage last bite?” In simple words, last bite is mechanism to deliver extra sales quantity to customer/trade/user to buy products using old price.

When faced with last bite, we must concern to two important thing as below:

1. Objectives of last bite
2. Mechanism of last bite

 There are 3 objectives of last bite

1. Increase/maintain market share
2. Boost sales volume
3. Maintain profit level

Increase/Maintain Market Share

When principal going to use last bite for increase/maintain market share these mechanism should do:

• Open last bite for trade customer, especially pareto customer
• No limitation for trade quantity ordered, but give short time limitation
• Principal ask distributor to make list of sales to trade forecast in last bite period
• Principal allocate last bite selling-in base on distributor forecast sales to trade in last bite period

Boost Sales Volume

When principal going to use last bite for boost sales volume these mechanism should do:

• Open last bite for mostly trade customer
• No limitation for trade quantity ordered, but give time limitation (commonly in a week)
• No limitation for last bite selling-in of distributor

Maintain Profit Level

When principal have to increase the price and simultaneously maintain company profit level (EBIT) these mechanism should do:

• Open last bite only for trade pareto customer
• There is a limitation for trade quantity ordered and give time limitation, (commonly 30% max of average last three months)
• There is sales volume allocation last bite selling-in for distributor (commonly 30% max of average last three months).

Cheers Up !

Selamat Bekerja!

Best Regard
Eka Surya Candra

https://www.linkedin.com/in/ekasuryacandra

ekasuryacandra@gmail.com

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