Case Study
Improving underlying pricing capabilities to drive millions in margin growth nationally
The Challenge In the past, it had proven extremely difficult to sustain pricing change because each of the company’s divisions had a significant amount of pricing independence, including having unique data structures and customer classes. Any pricing project therefore represented a significant undertaking. The firm’s pricing had also been based on cost-plus strategies. If the distributor were to successfully move to value-based pricing, the new pricing infrastructure would need to maintain some flexibility and customization between branches and banners. Finally, the client recognized the need for a dedicated pricing organization and well-defined pricing roles, but up until that point, hadn’t had the support it needed to create an effective division of pricing respons