Distribution Pricing Strategy
Grow ROI & Market Share with Pricing Strategy
At Pricing Solutions we believe that setting and managing prices is an ongoing process that your business should continually re-evaluate and improve.
In the distribution industry, that means building pricing strategy around a solid understanding of the complete decision-making process. Our clients achieve a typical payback of 10:1 on their research investment.
Speak to Our Distribution Experts Today:
The Transformation Process
Proven four step approach to design and implement a superior pricing structure.
1. Fix Profit Leakages
2. Discover Value Pricing Opportunities
3. Sell with Confidence
4. Measure Success
Sample Industry List
“Pricing Solutions helped us to go through a pricing transformation. The results have been impressive with each of our divisions achieving growth and EBITDA improvements well beyond our initial expectations.” CFO, Manufacturing
Agriculture
Building Materials
Electrical
Food
Healthcare
Heating
Industrial
Plumbing
Technology
Success Story: Distribution Case Study
The Problem
- The client was a global Electrical Distribution leader with $13.2BN in Revenue.
- Traditionally prices were set using a cost-plus strategy with many regions and divisions creating their own prices.
- Faced increased competition which was driving deep discounting and lower prices.
- Sales team was struggling to communicate value to customers who were now more price sensitive.
- Needed a pricing strategy that unified the organization, leveraged existing data and was flexible enough that it could be modified when necessary.
The Solution
- Discovery & Hypothesis Development
- Division visits.
- High impact opportunity identification.
- Pricing process & infrastructure assessment.
- Data Analytics Deep Dive
- Transactional data analysis (customer, product, order etc.).
- Pricing segmentation.
- Pricing model development.
- Implementation Planning
- Pricing policy and guideline development.
- Customer impact analysis.
- Sales and branch training.
The Result?
Realized 2% – 4% increase in revenue margin for each business unit through:
- Discount and margin rates alignment
- Effective implementation of price increases
- Identification and repair of margin leakages
What’s the Pricing Solutions Difference?
Pricing Solutions focuses on pricing and only pricing, and hence were able to provide specialist knowledge of requirements for an effective pricing strategy and process. After an initial investigation of consulting firms, the client selected Pricing Solutions, based on our knowledge and experience of pricing research techniques – superior to many of the general marketing research agencies claiming to offer pricing research.
Our senior team of consultants were able to work in a collaborative workshop style with Senior Management, Finance and Product Managers to establish alignment on what business objectives the pricing strategy needed to achieve.
Contact Us for a Pricing Consultation
Pricing Solutions is one of the worlds’ leading pricing consultancy firms. We are dedicated to helping clients tackle their specific pricing challenges and dramatially grow profitability. Our consultants have extensive experience in B2B and B2C markets within a wide range of industries.
For more information about our services or to get in touch with one of our consultants directly please contact our global headquarters.