Maximizing Price

CLIENT PROFILE
INDUSTRY
Manufacturer – Industrial Products
SIZE
$300M in Sales at Engagement
GEOGRAPHIC MIX
Global
MARKET POSITION
#2
UNIQUE LINES OF REVENUE
5
CHANNELS TO MARKET
Direct Sales, Dealer Distribution, Rental, Online
3-YEAR CAGR AT ENGAGEMENT
6-8%
BACKGROUND
Mid-market industrial manufacturer set prices using a cost-plus model, and held price steady over the product’s life cycle. CE2 assessed and recommended opportunities for price increases, supported implementation, and worked with client’s commercial leaders to establish a culture and processes for continuous price optimization.
OBJECTIVE
Establish a culture of price maximization among client’s price decision-makers and influencers, design and implement new price methodologies and onboard intermediaries
PROJECT DRIVERS
Strategic Objective:
Create culture of price leadership, establish methodologies and criteria for future pricing decisions and price maximization
Economic Objective:
A one-time, across-the-board price adjustment resulting in at least a 3% gain on a net-realized basis
DELIVERED
Worked with client’s price influencers and decision-makers to create price focus and understanding price levers
Complete product line-level analysis of competitive pricing and client’s performance against a hierarchy of end-user buying criteria, and recommend price increase
Recommend new discount/rebate schemes to resellers – a tiered approach, ultimately based on brand loyalty and sales performance
Recommend process and system to prevent gross-to-net price leakage
Support implementation through thoughtful internal and external communications and choreographing meetings with intermediaries and key customers

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