Exterior Building Products Manufacturer
Where Better Pricing Drives Better Growth
$28M Projected pricing impact
Transforming Pricing into a Strategic Growth Lever
Implemented new pricing model and analytics to advance overall pricing capabilities
Outdated systems, limited guidance, and weak visibility led to inconsistent pricing and inefficient execution. We implemented a strategic pricing model, streamlined key processes, and improved the tools and governance needed to drive stronger performance.
Explore More Case Studies
Situation
Inconsistent Pricing, Limited Visibility
Outdated systems and limited pricing guidance made updates, execution, and performance tracking difficult
- Limited pricing guidance for sales teams led to decentralized and inconsistent pricing practices
- Lack of visibility into the impact and effectiveness of pricing actions
- Inefficient communication and outdated technology hindered price uploads and maintenance, complicating price execution
- List prices not updated in over a decade due to systemic challenges
- Limited data and analytics infrastructure in place
Project Objectives
Identified key capability areas to enhance and drive pricing strategy, streamline processes, and boost adoption
Price Strategy
Current State
- Reactive, broad-brush pricing
- Certain list prices outdated for 10+ years
- Limited rebate guidance
Future State
- Pricing models use customer and product factors
- List prices and discounts updated across product lines
- Standardized rebates with red/yellow/green scoring
Process
Current State
- Excel-based reviews caused confusion and errors
- Clunky regional and corporate execution drove rework
Future State
- Web app replaced spreadsheets with one source of truth
- Streamlined price uploads reduced errors and rework
People
Current State
- Sales did not view pricing as strategic partners
- Analyst roles were unclear and single-threaded
Future State
- Stronger sales-pricing partnership
- Clear analyst roles and documentation
Approach
Developed Stronger Pricing Approach, Model, and Outcomes
We modernized pricing, improved execution, and strengthened performance tracking
- Developed and implemented a comprehensive price management system to address technological and process inefficiencies
- Collaborated with client teams to streamline the price load process
- Equipped the sales team with data and talking points to communicate price increases to customers
- Successfully tested and launched the new pricing model into systems
- Designed a peer-based pricing model, tailored to each of the main product categories
- Optimized the rebate structure to prioritize the certain customers
- Created a comprehensive measurement approach to assess impact and quickly address non-compliance and leakage
Modeling Principles
Each business line has unique characteristics that require tailored support
Segmentation-Based Pricing Model
Model recommends an optimal price range based on segmentation between similar customers and products
Key Takeaways:
- Segmentation includes customer and product attributes to ensure optimal comparisons
- Model calculates recommended price range based upon current relative pricing to suggest price increase aggressiveness
- Recommendations given to sales team for customer negotiations
Rebate Calculator
Performance-based guidance for rebates enables sales visibility to qualification and higher value outcomes
Key Takeaways
- Previous rebate structure did not appropriately reward customers based on business goals
- Rebate calculator provides sales team with visibility into customer’s recent performance, profitability, and other decision support
- Rebate tiers are calculated with recommended rebate %s based on customer’s historical and projected performance
Technology Infrastructure for Price Execution
Streamlined and centralized price management through implementation applications
List Price Management
- Equip product management team with up-to-date data to set informed list prices
- Utilize scenario planning functionality to model price impact based on list price adjustments
- Change log provides in-depth history of list price adjustments and corresponding dates
Price Exception Management
- Standardize change request process
- Include relevant data to enable fast, data-driven approval decisions and decrease turnaround time
- Provide insight into decision bottlenecks and turnaround time; notify users of pending exceptions
Customer Profitability Management
- Provides high level trends to identify impact drivers
- Customer-product overview shows pricing origin and price impact over time
- Detailed view of customer performance and portfolio for a deeper review of pricing and profitability
Impact
Delivered Measurable Pricing Impact
The new approach improved pricing performance, execution, and visibility
$28M
Projected Pricing Impact
Pricing model and tools provides ongoing pricing guidance
Comprehensive measurement tools track price impact, compliance, and leakage
Pricing Through Volatility: Profit Playbook Amid Rising Fuel & Material Costs
Practical strategies for smarter pricing, margin recovery, and faster responses that protect business goals and customer relationships.
Why Fire & Life Safety Leaders Need to Strengthen Pricing Clarity
Greater clarity, not market pressure, is the key to protecting and growing margins across branches and acquisitions.
Fuel Costs Are Rising: Are You Recovering Them?
Most companies react with temporary surcharges, but the real opportunity is embedding cost recovery into long-term pricing and operating models
The Great Decoupling: How Professional Services Should Rethink Pricing in the Age of AI
A roadmap for transitioning from hourly-driven rates toward value-based pricing where AI-driven efficiencies are affecting traditional pricing approaches