Industry

Logistics & Distribution
Distribution & Wholesale

Company Profile

  • European market leader in agricultural wholesaling

Situation and Objectives

  • High pricing complexity (>15 countries, >300k parts, >10k customers)
  • Missing pricing strategy & tools
  • Unclear pricing responsibilities
  • Lacking control over international price setting
  • Non-systematic list prices and discounts
  • Increasing transparency through web shops

Approach

  • Segment products into distinct groups
  • Develop group specific pricing rules and parameters
  • Differentiate prices based on technical and commercial drivers, e.g. using web analytics
  • Implement new concept into price decision support tool
  • Establish new pricing department

Pricing Methods

Results

  • Documented pricing strategy with clear guidelines
  • Price decision support tool
  • ~1m price changes “at the push of a button”
  • 2 new pricing managers installed
  • Roadmap for further rollout

Impact

  • ~3%ppts margin increase after full implementation

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