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Distribution Channel Dynamics

Discover the intricate balance between list prices and net/street prices in global marketing industry. Learn about off-invoice discounts, distributor sell-in, pricing transparency, and more. Explore the Seagate pricing model for insights on distributor business propositions and demand/pull focus.

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Distribution Channel Dynamics

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  1. Distribution Channel Dynamics Jeff Loebbaka Vice President, Global Marketing

  2. Industry Pricing: List vs. Net/Street 100% 100% 1% 1% – 2% 2% – 5% 1% – 2% Off Invoice discounts range between 11% & 21% 90% 5% – 8% 1% – 3% 79% 80% 70% 0% 60% Distributor Sell-in Distributor POS/Perf. List Price Cash Logistics POS MDF Net Price

  3. Seagate Pricing Model: Transparency 100% 100% 1% 1% Off Invoice discounts range between 5% & 8% 2% – 5% 92% 0% 0% 1% 90% 80% 70% 0% 60% Distributor Sell-in Distributor POS/Perf. List Price Cash Logistics POS MDF Net Price

  4. Pricing Transparency • Predictability • Distributor Business Proposition • Demand/Pull Focus • Visibility

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