Building Materials and Product Distribution pricing strategy
20,000+ SKUs, 10,000+ customers, high share of negotiated price levels, 100+ people involved in daily pricing decisions
Huge amount of data available, with dashboards, available for all managers but lack of strategic interpretation
LIST PRICE OPTIMISATION
All product prices reviewed based on detailed analysis of product performance, feature value, rotation levels, market prices etc. to generate additional margin from optimization.
TERM GRID & ALLOCATION POLICY DESIGN
Definition of discount floors and standard levels recommended by types of customers and products, with allocation rules and migration plans to review existing prices.
PRODUCT PRICING REVIEWS
Approach to help commercial team conduct an end-to-end review of product list price and discounts when team pricing confidence is low.
MANUAL PRICING FRAMEWORK
Developing a solution to support daily price decisions by customer facing teams with relevant information, price corridors, decision trees and recommendations.
MARGIN IMPROVEMENT: YOY gross profit increase by +2% overall PRICING CONFIDENCE: Better ability for management and customer facing teams to justify pricing policies and to stand by these policies