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.


  • Analysis
    • 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.
  • Process
    • 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.