Background
Our client is a private equity firm specializing in indoor air quality, with a diverse portfolio consisting of over 15 businesses, collectively generating annual revenues of approximately $5Bn. Experiencing remarkable growth exceeding 50%, the company aims to further boost margins by about 5% over the next three years. Their strategy emphasizes the crucial role of pricing in driving this financial achievement. They recognize that their businesses vary in pricing maturity levels and lack a unified pricing vision. Our client believes there is a significant immediate opportunity to introduce and develop World Class Pricing best practices across their portfolio and establish a long-term pricing vision.
The Approach
Iris Pricing Solutions proposed to develop a value-based pricing strategy and targets based on Micro-Segmentation for one of its companies.
The overall approach was to identify immediate pricing opportunities based on Pricing Analytics Deep Dive to identify and quantify customer and product factors that indicated higher or lower pricing power, create a micro-segmentation framework and associated pricing targets based on pricing power, identify potential pricing opportunities, and train the sales team on value-based pricing and how to use new pricing tools and prepare for customer conversations.
