Strategic Pricing Solutions

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Client Environment Multi-billion dollar provider of scientific products and services was growing at above-market rates but experiencing margin compression. Competition for largest accounts was intense and was pressuring pricing. The Solution Our strategic pricing approach involved rigorous data analysis to determine the ranges of existing prices by market segment, customer size, and customer situation. We also evaluated off-invoice concessions and hidden discounts. Statistical analysis revealed customers and products receiving prices lower than necessary. We provided strategies for responding to the largest, most competitive situations as well as standards for differentiating prices according to the market and situation. In addition, we trained hundreds of sales representatives to price strategically, and we introduced new tools for the sales team to evaluate and change pricing on all of their customers and products. Results Margins improved by nearly 50 basis points in the first year and by more than 100 basis points after the 3rd year. Sales growth continued to exceed market growth rates. “The strategic pricing initiative we launched with Scott and his team was one of the most successful initiatives we have ever had. Their process and approach were outstanding contributors to our profit growth.” – President, Global Scientific Products Provider Client Environment This $100 million manufacturer of commodity and specialty chemicals was challenged to hit aggressive profit growth targets. Pricing changes were based on detailed analysis of costs and volumes by segment. The Solution Working with the sales and marketing team, we introduced a structured approach for identifying the value of each product relative to alternatives in the market. We identified opportunities to improve the price/ value relationship and a structure to implement those improvements. Results Margins improved by more than 50 basis points. Sales growth exceeded annual target. “We thought we were pretty good at data-driven pricing, but we really learned a lot from the strategic pricing approach. It provided a significant profit improvement.” – SVP & General Manager, Chemical Manufacturer

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