Case Study: Price Concessions
Are price overrides causing your business to give away more price than you should, holding back profitability?
This food and beverage distributor significantly improved their margins by implementing a trusted pricing model and better price governance.
The Challenge
A multi-division food and beverage distributor had manual pricing processes with limited guidance on how to set price. Additionally, they were lacking clear guidelines for how to manage price exceptions which resulted in the sales team’s ability to determine one-off customer pricing and offer point of sale overrides.
The Solution
We implemented a dynamic pricing model to produce trusted, reliable price recommendations, then established pricing guidelines for pricing consistency and reduced price overrides. This resulted in $13M of margin impact and increased sales team adoption.
