After years of rapid growth through enhanced country coverage, the client worked with us to implement advanced, sustainable pricing methodologies and a better set of trading price levels across thousands of products to complement their growth ambitions.
Opportunity
The client faced a significant gap between their existing pricing approach and its true potential. Their pricing methods and tools had not evolved to match the impressive growth they had achieved, leading to confidence challenges within both the pricing team and the sales network.
Challenges
Outcomes
The client has achieved over 7% upside in pricing over the past 12 months in a competitive marketplace, while also implementing a sustainable process to manage pricing moving forward.
The core challenges of pricing confidence, managing large volumes of data, and time constraints have been significantly addressed throughout the collaboration.
By leveraging data-driven pricing strategies, automotive spare parts suppliers can improve profitability without compromising customer trust. Our work with industry leaders proves that a smart pricing model can drive sustainable growth and stronger customer relationships.
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pricing benefit with a +3% margin uplift as a percentage of revenue in the first year
50,000 SKUs analysed over 180 branches
Price increases caused no decline in volume, while price decreases stimulated expected volume gains
The pricing team possess a suite of tools fully handed over to manage pricing independently
We recommended a list price for over 50,000 SKUs within the client’s catalogue. The optimisation integrated all available data sources and was supported by additional research and data capture using our proprietary methods and tools. It included:
We established enhanced customer prices lists from the UK price list. The new structure achieved the principles we set with the client, including:
We migrated all customers to the long-term pricing structure. To do so, each customer was profiled across three criteria: value to the client, branch factors, and local competition. This profiling allowed for the identification of further margin capture opportunities.
The migration was facilitated with a powerful coded customer migration tool to optimise pricing for each individual sub-product group purchased by a customer.
Post completion review has revealed the exercise was highly margin-positive.
PHG developed three bespoke integrated tools, based on PHG’s technology, to automate the processes created during the project:
The pricing team are trained to independently manage the new pricing methods going forward and manage prices daily.
The tools we’ve implemented will unlock greater possibilities
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