Helping a staffing business
The market environment for staffing businessess is highly competitive. A competitiveness that automatically drives pressure on pricing and overall market stability. In order to maintain this pressure, our client decided to add pricing expertise to its revenue metrics in all countries where it is present. A decision that would lead them to a highly optimized revenue and profit. After all, it is in understanding how you can do pricing differently, that you can overcome market challenges and drive growth.
Our starting point was a typical “cost plus” concept. We started by explaining how we could improve on that concept and implemented a value based approach. An approach that took time as it already changed the culture and habits within the organization. In order to drive acceptance and positive change, we assisted our client with scientific research and stakeholder interviews, in order to truly grasp the notion of their “willingness to pay” and to fully understand our buyer personas.
Centralized change
In an organization of more than 600 employees, all with their own specific ideas and approach, driving such a change in strategy takes time. Our role soon become one of evangalizing change, and guiding our client through harmonizing and recentralizing its pricing approach. We provided coaching sessions, training and overall governance to make sure the entire organization was ready to cash in on their efforts.
We started with explaining them how pricing strategy could impact their revenue and profit, we then implemented that change together with them and finally we guided them towards an optimal use of the change.
And then came the profit
We did not dissapoint our clients trust. As we succesfully went from supporting them on Annual Price Revision Governance Processess, to a €3M net profit on a €50M business on 1 year only. Now there’s a result to be proud of.
Here’s what we did to achieve these staggering results:
Adopting Value Based Pricing
Our first step was getting management and leadership on board by explaining the possible impact of value based pricing on revenue and profit.
Willingness to Pay and Buyer Persona
After a research phase, we succesfully analysed what our buyers were willing to pay. This allowed us to implement a value price that could increase our revenue and profit.
Supporting Value Offer Creation
We never tell you what to do and run. We stick to it. And guide you with succesfully implementing new strategies. We provide you with coaching and governance along the way. That way we make sure that you can build on your profit for the long run as well.
€3M net profit
The end result: a huge increase on revenue and profit. Because after all, that is what its all about.
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.