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 |