• Long tail of products with cost plus mark up pricing
  • Excessive discount levels
  • No dedicated pricing focus, leading to pricing mistakes and margin loss

Outcome Required

  • Re-pricing of long tail of products to identify margin improvements
  • New pricing strategy and structure to manage pricing within new SAP system environment
  • Build a pricing management function to maintain and protect pricing gains

Action Taken

  • 5000 items re-priced leading to 6.8M EBIT gain in Year 1 = 1000% ROI
  • New price list and discount structure implemented – more accuracy and reduced margin risk
  • Hired pricing management team to further refine and optimise pricing using techniques developed by Pricing Insight