When the Trump administration introduced its tariff policies, distributors that rely on manual pricing tools like Excel found themselves facing a considerable challenge. The rapid and unpredictable nature of tariffs demands swift and accurate pricing adjustments, something manual processes struggle to deliver—and now their margins are at risk.
Why Manual Pricing is Dangerous
A report from The Future of Commerce describes Excel as a “slow” and “error-prone” tool for price management, with a “domino effect that results in margin loss.” Inefficiencies in manual systems lead to outdated price lists and delays in delivering quotes, further eroding profitability.
This issue is exacerbated when tariffs are implemented, delayed or rescinded, requiring large-scale price adjustments across hundreds or thousands of SKUs. Excel simply cannot keep pace with the speed and complexity of these changes. Even minor input errors or formula missteps can result in incorrect pricing, missed revenue opportunities, underpricing or customer dissatisfaction due to sudden overpricing. But that’s not the only reason distributors should move beyond manual pricing:
Manual pricing is labor-intensive.
Manual pricing diverts time and resources from higher-value strategic activities. Your pricing team, if you have one, must manually calculate cost impacts, update models and ensure that changes are correctly applied across all customer segments and channels. In a dynamic tariff environment, these tasks demand constant recalculations, creating bottlenecks that delay pricing updates. The longer it takes to implement adjustments, the greater the risk of absorbing cost increases, leading to shrinking profit margins.
All that manual work could, at any time, be reversed or modified based on changes in direction, retaliation and shifts in supply and demand patterns. Remember in 2017 when Chinese steel manufacturers suddenly redirected their supply to Europe at low prices. The switch was brutal for both European and US distributors.
Manual systems lack the sophistication required for modern pricing strategies.
Techniques like value-based pricing, customer segmentation and competitive analysis rely on real-time data and automation to be effective. Excel falls short when it comes to data integration and scenario modeling, leaving distributors unable to respond effectively to cost volatility. This gap often results in missed opportunities or lost business to more agile competitors.
Manual processes are hard to scale.
For distributors with extensive product portfolios or operations across multiple markets, manual pricing management becomes exponentially more complex. Each additional layer of complexity increases the likelihood of errors, inconsistencies and misaligned pricing strategies across regions or sales channels. These inefficiencies undermine both profitability and customer trust.
Ultimately, manual pricing isn’t just inefficient—it’s a direct threat to profitability. The reactive nature of manual updates means distributors are constantly lagging behind market changes rather than proactively managing their pricing strategies. By the time they make adjustments, the market may have shifted again, perpetuating a cycle of margin erosion and missed opportunities.
Automation is the Answer
Distributors can overcome today’s economic challenges by adopting automated pricing tools. Modern pricing software can:
- Analyze cost changes
- Recommend price adjustments
- Implement updates across SKUs and customer segments in real time
- Eliminate errors
- Accelerate decision-making
- Free up pricing teams to focus on strategic initiatives
In a volatile tariff environment, this agility is critical for preserving margins, staying competitive and driving profitability.
Given today’s challenges, ask yourself:
- Can I afford to continue relying solely on Excel for pricing management? While Excel is a versatile tool used by millions of businesses, its limitations in today’s fast-changing economic landscape are clear. Isn’t it time to complement Excel with a modern pricing solution?
- Can I afford to adjust prices only once or twice a year when the market may demand eight to 12 changes in the same timeframe? The potential margin dollars left on the table far outweigh the cost of investing in pricing technology. With a payback period measured in months, not years, the transition to advanced pricing tools is both logical and necessary.
It’s time to rethink your approach. Be bold. Join the pricing revolution.
Stephan Liozu, Ph.D. is Chief Value Officer at Zilliant a pricing management and optimization software company. He brings over 20 years of experience in pricing, innovation and value management. A highly accredited expert in the global pricing landscape, he is the accomplished author of over 15 pricing books, including “Pricing—The New CEO Imperative” (2021) and “Value-based Pricing: 12 Lessons to Make Your Transformation Successful” (2024)