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 B2B businesses, that means building a pricing strategy around a solid understanding of the complete decision-making process.

Overall, we look at product value, competition, and willingness-to-pay to communicate the value of your offerings in pricing. Our clients achieve a typical payback of 10:1 on their project investment through our adaptive and proven approach.

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

“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

Ingersoll Rand

Irving

John Deere & Co

Johnson Controls

Michelin

MoldMasters

NACCO Materials Handling

NationalAdhesives

Sensient F&F

Sherwin Williams

Swagelok

Terex

Winegard

The Problem

• Client was a 2+ B manufacturing conglomerate with multiple business units. Three business divisions were facing different pricing challenges that affected client’s profit.
• The lack of pricing structure and pricing alignment within the company were the major challenges for two business units.
• The third business unit faced overly complex pricing matrix that was hard to implement.
• To address each challenge, Pricing Solutions transformed divisions’ pricing infrastructure that provided a consistent pricing methodology and resulted in profit increase.

The Solution

1. Data Mining and Analytics
   • Analyzed 3 years of transactional data focusing on quantity, price, cost, discounts, customer and product types.
   • Uncovered quick win opportunities – price points, discounts and margin rates.
   • Segment customers (micro-segmentation) based on specific attributes – size, needs, behaviors.
2. Customer Research (mixed methodology)
   • Conducted 8 interviews per business unit to understand value drivers that drive decision making in pricing.
   • Combined a conjoint methodology using CATI (computer-assisted telephone interview).
   • Gained a better understanding of customers perception of the company (strengths and weaknesses, decision-making factors), as well as competitor activities and offerings.
3. Value-based strategy workshops and recommendations
4. • Facilitated workshops on pricing best practices, assessment tools, and value-based selling.
   • Recommended transforming cost-plus pricing to value-based pricing model to increase revenue.

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.

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.

Pricing Solutions Ltd.
1 844 943 0505
kjackisch@pricingsolutions.com