Automotive pricing software
Our client came to us with a clear challenge: how could they automate their price setting for the spare parts they were offering to their subcontractors. A challenge that was far from easy, knowing that more than 1 million of those parts were being sold every year. With a lot of differentiation between those spare parts, keeping track of quantitities and different prices was immensely difficult.
In order to truly create added value through pricing, we needed to study the willingness to pay and the standard market prices within the competitive landscape of our client, to figure out how we could build efficiency in their pricing models.
From managing end to end pricing activities to leveraging €1,75M net profit on a €150M business on 1 year only.
We guided our client from their existing “cost-plus” strategy, towards a relevant pricing strategy with a price efficiency that saw them increasingly building on their revenue. Over a period of 2 years we not only succesfully integrated the right strategy, combined with the right software. We also continously provided coaching and training sessions to make sure of the right usage of the newly implemented strategy and software.
Here’s what we did to achieve these staggering results:
Fully automated tool implementation
Guiding our client from using a plain excel file to keep track of pricing, towards a dedicated pricing software. By analysing needs and goals of our client and finding the right solutions to achieve those goals. We provided guidance from a complete strategic point of view ànd made sure of the right implementation of the new software.
2 FTE worth of extra performance
By implementing the right software, we were able to create space for two full time employees to further focus on other objectives. Taking away the loss of time of using outdated mechanism. In other words, we created two full times to focus on better performance, just by implementing pricing software.
A dynamic pricing solution
We created a case-specific algoritm based on 9 variables that allowed our client to reprice all of their materials on a moments notice. With this kind of flexibility and optimization, we could generate the maximum result on profitability.
€1,75M net profit
The result of all our efforts was an enormous net profit within the first year of implementing the pricing strategy. With our new strategy in place, we will see this profit returning on a yearly basis. Resulting in an unmatched and durable profit for our client.
Your ticket towards an increased profit
If this case study proves one thing, it’s that an increase in profit is much closer than what might appear on first sight. Finding the right strategy and implementing it can easily – and in a very short term – make you outperform your industry peers. Interested in learning more about pricing? Get in touch and let’s find out together how we can make your business grow.