Warehouse Product & Pricing Analysis
Who: A national B2B Wholesale Distributor of electrical products (process automation products, lighting and power distribution products and solutions) and services.
Business Problem: The distributor had identified incremental margin as one of their key annual objectives and looked to a Product & Pricing assessment to identify challenges and immediate margin opportunities.
Challenges Identified:
- Product segmentation was too simplistic
- Customer segmentation was unclear
- Pricing lacked credibility with sales
- Pricing system was inadequate
Precision Action: With our Product Segmentation and Customer Segmentation analysis, Precision partnered with the distributor to establish a new pricing model that would increase margin, complement existing pricing initiatives, and work within their existing software program. The new Pricing Model was implemented through a disciplined testing and project management process with ample imput from sales and the field.
Outcome:
2% incremental warehouse margin
Was achieved within 12 months of pricing model implementation with zero impact on volume.
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Warehouse Product & Pricing Analysis
