Dynamic Pricing
| CLIENT PROFILE |
| INDUSTRY Manufacturer – Industrial Processing Equipment |
| SIZE $75M in Sales at Engagement |
| GEOGRAPHIC MIX 75% North America |
| MARKET POSITION #4 |
| UNIQUE LINES OF REVENUE 2 |
| CHANNELS TO MARKET Direct, Dealer Distribution, Online |
| 3-YEAR CAGR AT ENGAGEMENT 8% |
| BACKGROUND |
| Manufacturer, dependent on established downstream dealer distribution was experienced steady growth, primarily focusing on customers and segments where competitive tension is less. Now, highly competitive segments are deemed essential to achieve accelerated, next stage growth and market share targets. CE2 was engaged to develop effective price strategies, largely executed through third-party distributor partners, to achieve the client’s objectives strategic and economic objectives. |
| OBJECTIVE |
| Develop a price strategy for penetrating high-value markets through an established network of independent, value-add distributor partners. |
| PROJECT DRIVERS |
| Strategic Objective: Become an effective and recognized participant in the industry’s most competitive customer and market segments. |
| Economic Objective: 3-year CAGR growth from 8% – 12% with a corresponding increase in market value. |
| DELIVERED |
| “Smart” price strategies that achieve client’s expectations for market share growth and strategic and economic value creation |
| Interviewed price decision-makers and influencers to baseline the current pricing culture and the quality of price decisions. |
| Interviewed distributor partners with high concentrations of target customers; established distributor profitability with client’s products, collected and analyzed historical price data and outcomes, assessed non-price factors affecting the distributor’s ability to compete, and assessed market elasticity. |
| Synthesized all inputs and added expert insights resulting in new price strategies that: • Achieve the client’s economic and strategic objectives • Partner the client with its distributor partners in the successful pursuit of high-value business, increasing the addressable market size for both. • Incent distributor partners to compete at a high level • Provide price decision-making structure, data, and guidance • Establish a culture of responsible price maximization |