A leading global supplier to diagnostics companies was under pressure to grow profitability in a highly relationship-driven sales environment. Despite market leadership, low price realisation from key accounts and increasingly unfavorable commercial terms meant that revenue targets were being missed.
Low realisation from price changes on key accounts was limiting the client’s ability to meet growth ambitions. Over time, a “David vs. Goliath” dynamic had developed, with structural value erosion from legacy terms and commercial concessions. Unlocking better pricing outcomes required targeted focus and deep pricing expertise to shift behaviours and rebuild commercial confidence across the organisation.
The PHG Key Account Value Optimisation process was deployed on 12 of the client accounts, with expected delivery of 8.4% pricing upside in the first year on the accounts in scope. Alongisde the financial benefit, the key account teams were armed with quality insights developed on the product to understand and strategise on each account to understand situation.
Furthermore the teams had strong cases in quality professional materials to put personnel in the best position to lead negotiations and drive outcomes. At the macro level PHG also provided the client a holistic assessment of why and where value leakage occurs and resultantly what the client could do to overcome this.
Supplier-customer relationships built on trust and history are powerful—but can become traps if commercial terms are not regularly reviewed. For many organisations, what began as goodwill has become structural margin erosion.
Does your business rely on long-standing customer relationships but struggle to realise fair pricing?
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annual pricing uplift across the accounts in scope
An upskilled, commercially confident sales force
A clear and sustainable plan to protect and grow margin over time
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