Pricing strategy, tactics and processes is a core area for our firm. These projects have fast, high payback because smart pricing creates tremendous profit leverage. More importantly, our projects generate methods and tools for on-going profit improvement and improved strategy execution.
We typically provide a target profit increase goal in our proposal. Our track record for exceeding this goal is 100% on our last 60 pricing projects, often by 2-3x.
- For a medium sized capital goods company we helped turnaround a 4 year decline in margins, escape a price war and create over $4 million in annual profit improvement.
- For a manufacturer of industrial consumables we helped achieve their first price increase in over 8 years, and dramatically strengthened the link between pricing tactics and business strategy, resulting in simultaneous margin and market share growth.
- For a large specialty chemicals business we provided the market data and structure for a more segmented pricing approach, which significantly facilitated several large account negotiations, resulted in greater industry price stability and contributed to over $6 million in annual profit improvement.
- For a major capital goods supplier we outlined pricing actions and process improvements for a targeted $20 million annual profit increase. We outlined tactics and steps to mitigate share risks, and metrics to help ensure full capture of the potential.