This market study helped isolate where price affected volume loss to help maintain and grow margin.
A specialty distributor was experiencing an undesirable volume decline, which they believed resulted from a recent price increase. They planned to implement price decreases to boost their volume but needed to validate the factors contributing to the volume decline beforehand.
INSIGHT conducted a comprehensive survey of the business’s declining and lapsed customers, revealing that the decrease in customer volume, was largely influenced by shifting economic conditions, especially for certain product lines. Furthermore, the survey provided valuable insights into the factors leading customer to purchase from other suppliers. The distributor was able to implement surgical, targeted pricing actions that addressed the underlying causes of volume decline, as well as avoid margin and revenue loss from unnecessary across-the-board price decreases.