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Pricing Project delivering £500k+ Pricing Strategies Case Study

The Situation

Senior management were concerned with slowing of revenue and profit growth despite annual price increases in place. There was discourse between sales teams as not all teams had agreed the increases with their customers and thus a price differential was emerging and causing friction between staff.

Senior management were repeatedly informed of pricing deals after they had been agreed with a customer rather than before and therefore did not feel in control.

The Purpose of the Project

To establish a new way of working to enable a more joined up approach to pricing, to give management more control and confidence, to enable margins to increase and to stop the pricing gap between customers unintentionally widening too far.

The Project

Anna Taylor (Emerson Nash) worked alongside the sales team to investigate the scenario, analyse the data and propose and implement a new pricing procedure:

  • Interviews and workshops were held with key stakeholders
  • Analysis of data and customer outlier identification
  • New key customer sign-off process – flexible yet thorough to avoid delays in negotiation yet keep management informed in a timely manner to enable full senior sales team sign-off
  • Improved communication on pricing between sales teams with updates at monthly team meetings

The outcome

  • £500k increased revenue driven by rate rather than volume.
  • Full sign-off from all members of the sales team.
  • Senior management confidence increased and discourse between sales teams reduced thanks to clearer communication, process and guidelines.
  • Scheduled calendar weekly price calls ensured that all new deals could be discussed and signed off in a timely manner with full senior management involvement when required.
  • All customer price outliers were identified, and an action plan put in place where applicable.

About the Business

  • A UK subsidiary of a global premium drinks company
  • Turnover in excess of £150m+ with consistent year on year growth
  • A team of 100-150 employees

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