A well-priced product is only profitable if it’s the right product.
For many distributors in the glass, ceramics, and refractories sector, product and pricing strategies are developed in silos. The purchasing team builds a diverse catalog based on vendor offerings and client requests. Meanwhile, pricing teams apply markups based on cost-plus formulas, market comps, or tiered discount structures. The result? Misalignment—and missed margin.
A low-margin commodity SKU sits right next to a high-touch specialty item with inconsistent markup. Some clients get deep discounts on high-velocity items without volume justification. Others pay full freight on niche products they order regularly. It’s a pricing jungle. And your catalog structure is the root cause.
Step 1: Define Your Strategic Product Segments
Before pricing can be optimized, you must understand what role each SKU plays in your portfolio:
Core Products: High-volume, consistent demand (e.g., clear float glass, standard alumina tiles)
Premium Products: Specialized materials with performance specs (e.g., infrared-reflective coatings, fused silica refractories)
Supportive SKUs: Complementary parts or accessories (e.g., setting blocks, mortar mixes)
Legacy/Niche SKUs: Low-volume, customer-specific items
Each of these deserves a different pricing philosophy. Premium products warrant value-based pricing. Supportive SKUs can hold high margins due to their bundling role. Core items require tight, competitive pricing—but should still be protected with volume thresholds.
Step 2: Map Margin Expectations by Product Type
Don’t apply the same margin target to every product. Instead:
Assign minimum margin floors by product category
Establish margin ceilings to remain competitive
Tie discounts to volume, customer segment, or application type, not just order size
If you’re carrying engineered ceramic substrates with single-source supply, your pricing should reflect the difficulty of replacement. If you’re selling standard IGU components, the pricing should be dynamic but predictable.
Step 3: Rationalize Redundant SKUs
Often, margin confusion arises because distributors stock too many overlapping items. Five thicknesses of frosted glass, three grades of refractory patching material, or multiple SKUs with identical spec but different item codes due to rep entry error.
This SKU clutter obscures pricing strategy. By consolidating or sunsetting low-performing SKUs, you can focus pricing discipline on high-impact products.
Step 4: Tie Product Expansion to Price Strategy
Too many distributors onboard new SKUs without vetting their pricing viability. Before adding that custom glass coating or new kiln shelf line, ask:
What margin range is realistic?
Who are the top three client segments?
Will this cannibalize a better-margin SKU?
How hard is it to replenish?
Align new product intros with your pricing model from day one—not after customer adoption forces reactive price setting.
Step 5: Empower Sales With Catalog-Pricing Insights
Finally, give your sales teams catalog visibility with context. Don’t just show them pricing tiers—show them where margin lives. One of the most successful U.S. glass distributors we studied color-coded their catalog: green (margin-healthy), yellow (volume-sensitive), red (watch closely). Sales reps instantly knew which SKUs to promote, discount, or avoid.
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When your product catalog and pricing strategy operate as one system—not two—you unlock real growth. You avoid accidental discounting. You protect your core lines. You turn every SKU into a deliberate revenue decision. In today’s volatile market, alignment isn’t a luxury. It’s table stakes.
