Rigid Packaging Manufacturer & Distributor

From Pricing Chaos to Profit Power

Building the tools, skills, and insight to turn vision into value

This packaging leader faced significant pricing complexity due to heavily siloed processes, highly customizable SKUs, and limited data visibility. The lack of access to true profitability had led to margin decline. To address these challenges, we developed and implemented a centralized strategic pricing program that consisted of market-based pricing, a tailored pricing and sourcing application, sales training, and an oversight program to manage ongoing profit leaks.

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Situation

Transforming Complex Pricing into Clarity

From 50,000 highly customized SKUs to actionable pricing intelligence

Decentralized pricing decisions: 300+ individuals involved in sourcing and pricing, 95% of SKUs unique to each customer, highly siloed decision making
No ability to strategically set pricing in ERP
Complex sourcing and invoicing limited visibility into pricing and profitability trends for individual items

Unique combinations of 200+ potential attributes defined SKUs; 50,000+ SKUs, 95% unique to each customer
Due to a lack of standardized products, the company had limited understanding of viable market pricing and costing

Discovery

Underwent discovery process to determine prioritized areas of opportunity and what success would look like

Core Challenges

50,000+ items, 95% unique to each customer; variable practices limited consistent comparisons
Freight, value-added services, and off-invoice costs limit visibility into true profitability
Volatile raw materials and logistical costs complicate assessing profitability and trends
True profitability was falling; Accounts that were gaining profitability obscured losses from down accounts

Approach

Smarter Pricing, Stronger Margins

Tailor pricing software, 50+ interactive workshops, and active sales oversight turned complex pricing into a competitive edge

Developed tailored web-based software application to enable instant access to all relevant pricing information for new and existing products
Conducted 50+ onsite training workshops, including profitability metrics, new pricing processes, and sales negotiation techniques
Implemented Sales Manager Oversight Program to identify and correct profit leaks

Unlocking Market Visibility

Leveraged knowledge from $1.5B+ of transactions

1. Expanded the Understanding of Peer Groups

Overcame Limited Comparability – With so many unique items, view of market pricing was limited
Identified Value Drivers – Conducted detailed interviews with experts while stress-testing hypotheses with data
Informed Decisions – Results from across the company created visibility into market pricing and vendor expectations

2. Prioritized Identification of Pricing Outliers

3. 10-15 Common Attributes Define Base Products

4. Implemented the Approach

Provided significant training and continually refreshed data which enabled sales team to leverage new insights
Partnered with Core Users to adjust approach and logics based on learnings and feedback from both heavy and reluctant users
Initially provided on-demand supposed, which was transitioned to Pricing Team once capabilities were established

Ensuring Behavioral Change

Data was the foundation; A robust change management program to drive behavioral change was imperative

50+ Onsite Workshops

Onsite training included profitability metrics, new pricing processes, and sales negotiation techniques

Monthly Regional Reviews

Implemented monthly reviews of sales management visibility, actions, and accountability was critical for sustainable behavioral change

Pricing as a Daily Focus

Sales and executive leadership drove a cultural shift where pricing is a daily discipline, supported by personalized guidance for every team member

Building Competencies

Supported search and training for building out internal pricing team, structure, and capabilities

Technology Solution

Tailored software integrated into existing systems & processes ensured visibility into margin leaks and opportunities

Targeted Pricing Guidance: Delivered to sales team via application, ensuring speed to quote with market-relevant pricing in-line with margin goals
Drill-Down Capabilities: Insights into overall profitability for customers and items, plus details on key price and cost components such as outbound freight
Existing Outliers Highlighted: For every item, salespeople can see valid market comparisons and view their positioning relative to their team
New Product Quoting: Users can define new products based on key value drivers, generating comparisons for similar transactions to ensure appropriate initial pricing
Regular Notifications and Reviews: Actionable reports provided to sales team, with follow-up to confirm committed pricing changes and ensure follow-through