Case Studies

UK Timber Distribution Group

,
Case Studies

UK Timber Distribution Group

,

Building a new pricing architecture for a large construction business in the UK to provide consistent pricing whilst improving margin ambition

£ 4.8 m

£4.8m profit uplift on 2021 revenue

1.6 %

1.6% margin as a % of sales

Challenge:

  • Majority of sales in the business were ad-hoc, with no structure or efficient market knowledge.
  • The business had attempted pricing projects internally in the past. But lack of buy in and resistance to change resulting in negligible success 

Outcomes:

  • Pricing architecture to create consistent, credible pricing:

    • Price scales which use previous sales performance
    • Product segmentation to ensure competitiveness where needed
    • Customer segmentation built into their IT systems for improved sales efficiency
  • +£4.8m profit uplift on 2021 revenue
  • +1.6% margin as a % of sales
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