Company Profile

  • €380m annual revenue

Situation and Objectives

  • Decentralized pricing; solely the responsibility of sales
  • Highly experience-based system, lacking consistent discount logic
  • Generous early payment discounts
  • Additional leakages, such as free transport, materials, and special packages
  • T&C/leakages
  • Target discount
  • Low runners

Approach

  • Conduct a comprehensive analysis of channels and distribution, pricing, promotions, and terms and conditions
  • Identify inconsistencies and improvement potential for all areas; consider interdependencies
  • Develop new approaches for all areas and prepare their implementation

Results

  • Improved consistency and control of pricing with a target price model
  • Reduced leakages
  • Potential to increase EBITDA by 1.3 to 2 percentage-points, with half of this increase achievable within the first 12 months

Impact

  • Potential 1.3 to 2 percentage-point increase of EBITDA