Materials Processor and Distributor
Implemented Uniform Pricing Structure to Enhance Profitability
Uniform pricing structure and differentiated price adjustments delivered $125M in price impact over 3 years
Strategic Pricing Transformation: Driving Profitability in Materials Processing
A $600M materials processor & distributor implemented a structured pricing strategy, negotiation training, and analytics-driven decision-making to enhance profitability.
Focusing solely on volume without a strategic pricing approach led to commercial unsustainability for this $600M materials processor & distributor. The sales team lacked the tools and training to negotiate profitable commercial agreements, resulting in inconsistent pricing and unaligned business strategies. To address these challenges, the company implemented an extensive negotiation training program, leveraged analytics to prioritize key customers, and developed structured pricing strategies. These efforts resulted in a successful 15-20% price increase, delivering $125M in impact over three years.
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Situation
Volume Over Profitability: The Need for Strategic Pricing
Unstructured negotiations and a lack of pricing strategy led to commercially unsustainable customer accounts and revenue loss.
- Client was not considering price strategically, and valued volume at the cost of profitability
- Customer accounts had become commercially unsustainable
- Sales team had limited capabilities to negotiate new commercial strategies, including price changes and compliance
- Accounts were requiring upfront alignment with the overall business strategy instead of deciding during negotiations
Approach
Empowering Sales Teams with Data-Driven Pricing & Negotiation Strategies
Through training, analytics, and leadership collaboration, the company built a structured approach to pricing and value-driven negotiations.
- Conducted an extensive negotiation training program for the entire global sales team and leadership
- Utilized analytics to identify and prioritize customers worth investigating due to economic value
- Collaborated with leadership to address critical strategy situations, developing plans and coaching to successfully renegotiate deals
1
Identify key considerations beyond price
2
Define the value and cost of “gives and gets”
Impact
Executing Price Strategy at Scale
Training, tools, and execution drove significant increases and long-term value
$125M
Impact delivered through price over 3 years
15-20%
Price increases successfully launched
Completed successful negotiation playbook & training for price increases
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