Case Studies

Supplier of Genomics Products

Healthcare & Life Sciences

Pricing architecture overhaul materialised through innovative pricing tool led to price increases of +35% to +60% without incremental churn

Challenges 

  • High pricing complexity with millions of product combinations depending on customer configuration 
  • Insufficient commercial thinking in pricing and inefficient pricing tools 
  • Suboptimal pricing with several top products priced substantially below the market 
  • Lack of differentiation in discount strategy across the customer base, with overuse in some segments resulting in value leakage 
  • Limited focus on the broader customer and product portfolio meaning sales potential was not maximised 

Outcomes

  • Prices increased by 35-60% without material volume decline  
  • Optimal pricing architecture considering commercial potential in addition product features and volumes 
  • Cost efficient pricing tool to calculate prices based on customer needs and customer profile 
  • Dramatically increased confidence in own value and prices 
  • Price optimisation process developed and implemented capturing win and loss information to guide rapid price adjustments 

 

What We Did

Market Research

We interviewed key stakeholders across various functions, to gain a baseline understanding of the products and commercial landscape. The complex and high-precision nature of the product made this step particularly important in this case. 

We designed and released a survey to understand: 

  1. Customer key purchase criteria: what is important to customers when they are making a purchase decision for what were high-precision and highly customised specialist products 
  2. Price positioning versus competitors: what is the true competitive landscape 
Pricing and Discounting Review

During the pricing and discounted review, we conducted a price and discount review of all accounts purchasing products to identify customers underpaying versus their peers. 

We benchmarked product configurations across competitors to develop a like-for-like offering to calibrate prices. 

Pricing Architecture Solution Build (Quoting Engine)

The main project deliverable was a Custom Price Quoting (CPQ) tool to generate a price for any combination of component inputs, with rules set to determine premiums based on product and customer dimensions. The tool was calibrated to generate prices at the correct positioning to competitors and allows salespeople to quickly generate a quote for highly customised products which was not possible before.   

We have worked with the client in several continuation projects and the CPQ tool is a fundamental part of their pricing and sales process today. 

We got some fantastic advice in helping us get great results and improve the way we do pricing.

Client Testimonial

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