Creating a new pricing structure
A large manufacturer offering tens of thousands of products through wholesale distribution was challenged with a largely manual and disjointed legacy pricing system. The issue raised was how to structure a rationally-based approach that would recognize market, competitive, product and other factors to craft a digital pricing system.
- Hypothesized possible drivers of rational price differences.
- Conducted survey-based conjoint analyses with end-users.
- Analyzed product cost differences around key manufacturing and service elements.
- Streamlined pricing around key drivers while aligning with existing prices.
- Met with the salesforce and distributors to understand existing pain points.
- Modeled impact by customer, market and product type.
- Worked with product development, sales, finance, pricing and IT to develop a coherent, factor-driven pricing system that could be readily explained to customers.
- Rationally-based pricing system suitable for digital delivery to wholesalers and readily updated through market, customer and other factors.