• Building Materials and Product Distribution pricing strategy

    Building Materials

    THE CHALLENGE

    BUSINESS COMPLEXITY
    20,000+ SKUs, 10,000+ customers, high share of negotiated price levels, 100+ people involved in daily pricing decisions

    OVERWHELMING DATA
    Huge amount of data available, with dashboards, available for all managers but lack of strategic interpretation

    OUR SOLUTION

    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.

    RESULTS

    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