Service Lines:


Client Situation

Heavy machinery component supplier was experiencing declining sales during a period of extended economic growth when they expected increasing revenues

Company suspected their pricing approach was contributing to the challenge

How We Helped

Analyzed sales volumes across products and customers and identified customer and SKU mix that resulted in lower margins

Conducted voice-of-the customer research to discern customer journeys, key procurement criterion, and client’s recent performance strengths and gaps

Uncovered key insight on how becoming the default supplier in purchase order system for a specific category was central to maintaining volumes and continuing to be selected as the supplier-of-choice

Learned from customer base that total cost of ownership including volume incentives were central to the decision-making calculus

Discovered that competitor set was offering additional rebates for high volumes to increase market share


Developed a new pricing structure that would reward higher volumes and revenue per customer while improving margins

Offered select customers pre-rebate structure to win market share, guarantee volumes and secure predictability of future cash flow

Client regained market share from competitors and revenues rebounded quickly