$2.5-3M
revenue expected from new discounts.
10%
Improvement in the bottom line.
5 months
Started realizing financial gains.
The Challenge
Our client was a leading company valued at over $50M, specializing in the sale of highly engineered sanitary and high-purity flow components, holding a prominent position in the market.
Despite their notable success, they faced a considerable challenge – an extensive product portfolio comprising more than 5,000 Stock Keeping Units (SKUs), in addition to a pricing framework that lacks organization and a noticeable absence of a cohesive discount strategy.
In a proactive effort to enhance operational efficiency, our client reached out to Iris Pricing Solutions and initiated a strategic undertaking. Their objective was to establish a systematic and objective segmentation framework that could discern customers and products based on their intrinsic value. This approach aimed to identify commonalities among customers and products, ultimately enabling a more streamlined and targeted approach to their sales and marketing initiatives.
Manufacturing & Industrial
Specializing in precision engineering, manufacturing companies dedicated to sanitary and high-purity flow components play a pivotal role in ensuring the integrity of fluid processing systems. With applications across pharmaceuticals, industrial, food, and more, our client contributes to the seamless control of liquids in critical industrial processes. Focused on cutting-edge technologies and unwavering quality, they navigate the complex landscape of fluid processing, meeting the demands of diverse and dynamic industries.
Our client, recognizing the need to fortify their pricing strategy, reached out to Iris Pricing Solutions for expert guidance. The recommendations, tailored to address inflation and identify potential pricing opportunities, indicate a potential 10% improvement in the bottom line.
Building a Solution that Fits
The Iris Pricing Solutions team implemented a three-phase approach.
Phase I: Initial Assessment.
- Iris Pricing Solutions conducted 12 customer interviews to understand the scope of opportunity and sensible price suggestions.
- Collected transaction data from previous years to identify immediate pricing opportunities.
Phase II: Value Pricing Strategy
- Created a segmentation strategy based on customer and product value.
- Formulated pricing recommendations tailored to each specific customer and product.
Phase III: Change Management
- Developed account impact analysis to prioritize re-pricing opportunities.
- Proposed 3 price targets to gradually adjust discounts and offer similar discounts to similar customers.
The Pricing Solutions Difference
Iris Pricing Solutions is experienced in understanding the unique challenges facing manufacturing and industrial companies. Our team uses focused, customized research methods to develop strategies that leverage pricing to achieve goals. We use research and data-driven strategies to help grow revenue, expand market share, reduce pricing complexities and ultimately, align price with value for consumers.
