Superior pricing capability equals greater resilience
- Pricing-to-value withstands market cycles and other disruption
- New product pricing in proportion to differentiated customer value
- Shared goals bridge organizational gaps
- Error-free pricing and compliance is monitored
- SIX SIGMA PRICING eliminates out-of-control variation and leaks
- Pricing operations are efficient and nimble
- Analysis guides decisions and Dashboards measure success
…. and sustained growth follows naturally
S-TOP™ (es-top) resilience framework illuminates price-related pitfalls
So winning pricing strategies and flawless execution follow naturally
Global experience spanning diverse industry sectors and company settings
Medical Device, Hospitality, Consumer Packaged Goods and Outsourced Services to manufacturing of Electronics, Chemicals, Tooling, Climate control, among others.
Client success is our source of pride
A provider of outsourced payroll services and employment benefits experienced significant price and revenue loss. The company upgraded products constantly without articulating the incremental value to customers. Discount processes were inadequate for a highly negotiated environment. Roles and responsibilities were amorphous and lack of metrics for decision support led to inadequate control. After a preliminary assessment, we framed the price improvement project on the key processes that underpinned all the pricing challenges. Initial priorities — Controlling excessive discounts with analytically set guidelines, improving the price increase process and correcting portion of negative EBIT business — had a potential to yield $7 million in incremental price within a quarter.
A premium playground equipment manufacturer wanted to determine an optimal discounting strategy to match their low-end competitor’s pricing and promotions. We helped articulate the differential value in their offering, track deal results and interpret competitor behavior. The company has improved internal communication and internal due diligence. The company saved $2 million in Q4 2010.
This company experienced margin erosion eight quarters in a row. Our pilot project with a $250 million business unit realized $10 million in the first year. The company realized the full potential of a price increase which is the basis of the HBR article, Six Sigma Pricing, and the book with the same name. The company gained confidence in pricing to hire a corporate level Pricing VP and invest in price analysis software.
This global leader of tooling solutions faced cost inflation of over 350% in their critical raw material. We analyzed the company’s data and internal processes to reveal sources of leaks, issues related to pricing organization, misplaced incentives and lack of controls. Our recommended improvements for process, price guidelines and tracking reviews realized $40 million within a year for the company.
The company lost $125 million in sales and suffered severe margin decline with the onset of the weak economy. We assessed their pricing capability and pricing processes. The analysis of sales data revealed that half of the revenue shortfall stemmed from price leaks and poor process controls. Our recommendations enabled the company to set course for regaining lost revenues.