We uncover the truth behind margin decline.
Declining margin can come from a plethora of causes, sometimes out of your immediate control. Regardless of the reason, INSIGHT’s expertise lies in uncovering the truth behind what’s happening in your business and crafting intervention plans to ensure margin and growth plans are met.
Businesses that face margin decline need to first uncover where and why it’s occurring. It’s usually never just one thing and often lives at the most granular level of data analysis. Our experts surface where customer and product mix shifts, customer sentiment, competitive factors, price changes, unearned discounts, or other factors play a role in margin changes and where certain behaviors are driving impact. Then, we partner with your business to find and implement an approach that delivers tangible benefits and desired outcomes.
Common Challenges
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Cost Increases
Are cost increases outpacing price? It’s critical to understand where in your business—product lines, regions, customer groups—cost changes are affecting margin and prepare pricing actions to adjust your overall pricing strategy, pass through costs, or make operational changes.
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Customer or Product Mix Shifts
When customers shift their purchasing patterns and buy less profitable products more often, this affects margins. INSIGHT can pinpoint exactly where this is occurring in your business and develop mix management strategies to help enable your commercial team to sell the most profitable mix.
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Price Concessions
You can’t monitor every salesperson’s activity, nor should you. But we can establish standard best practices, guardrails, and approval processes to ensure unwarranted price concessions don’t slip through the cracks. Sales teams should also be equipped with the proper marketing materials, communication strategies, and escalation plans that support business objectives.
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Misaligned Pricing Strategy
Which pricing method is best for your business? From cost-plus to value-based to SaaS pricing, uncover if there may be a more profitable way for your business to price your products and services.
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Highly Competitive Market
Your prices need to be meticulously and dynamically managed to maintain or grow margin. Make sure you have consistent, data-backed intelligence regarding your competitive landscape and customer perceptions integrated into your pricing engine and robust analysis capabilities to granularly measure shifts and necessary adjustments.
Meet Our Experts
With over 250 dedicated pricing strategy experts, our team helps businesses achieve profit and EBITDA growth through our process proven on over 800 engagements since our founding in 2006.