The verdict in three sentences
When a building materials distributor manages 15 discount grids by hand for 4,000 trade customers, every counter salesperson invents their own rule, and margin leaks by 1 to 2 points. A pricing engine connected to your ERP costs 25,000 to 70,000 EUR excl. VAT and produces a consistent quote in 2 minutes at the counter. On 30 million EUR of revenue, recovering just 0.8 point pays back the project within a quarter.
Why discounts drift in a multi-branch distributor
Between the branches in La Valentine, Vitrolles and Aubagne around Marseille, practices diverge. Discounts are stored in the ERP (Kerridge K8, Sage X3, Dynamics 365 or a trade ERP), but the real logic lives in Excel files, verbal deals and salespeople's memory. Supplier price increases, frequent on cement, steel or insulation, are not passed on everywhere at the same time.
| Source of margin leakage | Observed frequency (2026) | Average impact | Engine fix |
|---|---|---|---|
| Exceptional discount granted without approval | 8 to 12% of lines | -3 to -6 points on the line | Cap per salesperson, approval above it |
| Supplier increase not passed on | 2 to 6 weeks late | -1 to -4 points on the family | Automatic net price update |
| Wrong grid applied to the customer | 3 to 5% of quotes | Key account discount given to a small trader | Grid tied to the account, locked at the counter |
| Expired project price still active | 15% of project prices | Project margin on regular stock | End date and 7-day alert |
| Stacking of family and customer discounts | Frequent | Discounts adding up instead of replacing | Explicit priority rules |
What a pricing engine costs
2026 orders of magnitude for a distributor with 3 to 10 branches, ERP integration and salesperson training included.
| Level | Scope | Price (EUR excl. VAT) | Timeline | Annual maintenance |
|---|---|---|---|---|
| Core | Customer and family grids, net prices, discount caps, ERP read | 25,000 to 35,000 | 8 to 10 weeks | 4,000 to 5,500 |
| Standard | + project prices, hierarchical approval, counter PDF quote, quotes written back to ERP | 36,000 to 52,000 | 12 to 16 weeks | 5,500 to 8,000 |
| Advanced | + margin simulation, automatic increase pass-through, dashboard per salesperson and branch, online quotes for trade customers | 53,000 to 70,000 | 16 to 22 weeks | 8,000 to 11,000 |
| Option | 3-year cost | Rule flexibility | Main limit | |
| Excel and verbal rules | Almost zero direct cost | Full but uncontrolled | 1 to 2 margin points lost | |
| Native ERP pricing module | 10,000 to 30,000 EUR of configuration | Medium | Complex rules hard to maintain | |
| B2B pricing SaaS | 60,000 to 150,000 EUR (annual subscription) | High | Designed for large groups | |
| Custom Standard engine | 52,000 to 76,000 EUR | High | Upfront investment |
Measurable gains at the counter
| Indicator | Before | After 6 months |
|---|---|---|
| Average counter quote time | 8 minutes | 2 minutes |
| Lines with off-grid discount | 10% | Under 3% |
| Delay to pass on an increase | 4 weeks | 24 hours |
| Gross margin rate | 24.5% | 25.5 to 26.5% |
| Quote-to-order conversion | 38% | 45% |
A fast quote is not a nice-to-have: a tradesperson waiting 8 minutes with three colleagues behind him goes to the competitor across the street.
Mini case study
Sophie, sales director of an independent distributor with 6 branches around Marseille, generates 30 million EUR of revenue with 4,000 trade accounts. By capping discounts and passing on increases within 24 hours, she recovers 0.8 margin point, or 240,000 EUR a year. At the counter, 120 quotes a day drop from 8 to 2 minutes: 12 salesperson hours freed every day across the branches. The Standard project costs 48,000 EUR excl. VAT plus 7,000 EUR annual maintenance. Payback in under 3 months.
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FAQ
Do we need to change ERP to get a pricing engine?
No, the engine plugs into the existing ERP through an API or file exchange. The connector usually accounts for 15 to 25% of the project budget.
Will salespeople lose their commercial freedom?
They keep some room, for example 3 extra discount points without approval. Above that, the branch manager approves in one click, in under 5 minutes on average.
How long does it take to migrate our 15 grids?
Migrating and cleaning the grids takes 2 to 4 weeks. It is often the opportunity to cut them down to 6 or 8 grids that are actually useful.
Can trade customers check their prices online?
Yes at the Advanced level: a customer portal shows net prices and quotes, which cuts price request calls by 30 to 40%.
How do we measure the real margin gain?
Compare gross margin by product family over 3 months before and 3 months after, with a comparable product mix. A 0.5 point gain is already significant on 30 million EUR, or 150,000 EUR.
Let's scope your project. Send us your ERP, your discount grids and number of branches: we will price a Core or Standard engine between 25,000 and 52,000 EUR excl. VAT, delivered in 8 to 16 weeks. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
