Are you setting price based on reliable customer, product, and competitor factors?
Business Scenario
- Revenue gains due to volume, not pricing
- Limited price differentiation across core business lines
- Sales team authority to quickly quote new customers without centralized pricing guidance
- Price setting based on similar products, not value drivers and long-term revenue potential
Our Approach
- Conducted market research to gain insights on value drivers and pricing perceptions
- Segmented customers based on learnings and similar characteristics
- Built data-driven pricing model based on market performance and value
- Developed a discounting algorithm to provide sales team guidelines for more rapid quoting and customer acquisition
The Results
- ~5% price impact
- Surfaced customer behaviors and value drivers
- Revised pricing strategy based on market intelligence
Sample Market Intelligence Learnings
Can you confidently negotiate price changes for successful price realization?
Business Scenario
- Serve multiple end-markets, including a niche in-scope end-market
- One large customer represents >10% of revenue for a large business unit and was coming out of a 4-year contract over which time there was limited ability to implement price increases (<4%) while costs increased by >20%
- Upcoming customer negotiation was targeting a 20% increase
- 1 week before planned negotiations, the customer communicated desire for a 15% decrease
Our Approach
- Interviewed the target customer’s distribution network and one of the Client’s main competitors to understand price trends, product value, and competitive alternatives
- Learned the customer had raised their prices by 15-25% despite minimal price increase from our Client
- Discovered lead time to find a replacement was 12-18 months and only one other supplier exists
- Built negotiation strategy and execution plan and led on-site training to ensure buy-in and confidence entering negotiations
The Results
- Validated appropriateness of a 20+% increase
- Confirmed leadership position in the market
- Confidently executed negotiation strategy, backed by facts
Sample Market Intelligence Learnings
