Protein Distributor
Optimized Pricing with Market-Driven Strategies
Implemented weekly market-driven price recommendations, driving $2.2M impact in year 1 on touchable revenue
Optimizing Pricing Strategy: Implementing Market-Driven Weekly Price Recommendations
A protein distributor established a national pricing structure with dynamic weekly price updates, improving revenue consistency and delivering a $2.2M impact in Year 1.
A protein distributor faced significant pricing inconsistencies across its 12 in-scope branches due to manual processes, lack of visibility into customer profitability, and deviations from system prices by the sales team. With no structured approach to price adjustments, many SKUs remained outdated despite fluctuating costs. To address this, the company implemented a data-driven pricing structure that provided weekly list price recommendations based on recent sales trends and market data. By introducing daily target price points for customer-specific discounting, the company achieved $2.2M in revenue impact in the first year.
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Situation
Inconsistent Pricing & Manual Processes Led to Margin Uncertainty
Without structured price governance, SKUs lacked timely adjustments, and sales teams deviated from system pricing on 66% of transactions.
- Manual pricing process and governance across 12 in-scope branches
- Pricing inconsistencies for list prices and deviations
- Limited visibility to customer profitability
- Many SKUs had no recent price adjustments, despite cost changes
- Sales team deviated from system prices on 66% of transactions with no consistency
- Believed their sales and procurement teams knew when to change price inherently based off their interpretation of the market
Client’s market changes frequently requiring dynamically updated price recommendations on a regular basis.
Weekly Pounds Sold & Margin Per Pound
Established measurement system to monitor tonnage and corresponding margin trends
- Red bars indicate prior year pounds sold and blue bars indicate pounds sold in the same week this year
- Black line indicates Margin per pound from prior year, yellow line indicates margin per pound from this year
Approach
Implementing Data-Driven Weekly Pricing to Align with Market Trends
By providing real-time price recommendations and customer-specific discounting, the company improved pricing accuracy and profitability.
- Weekly list price recommendations based off of recent sales and market data
- Daily target price points, which provide customer-specific discounting
Impact
Automating Pricing for Scalable Impact
Real-time updates and customer-level insights drove measurable results in year one
$2.2M
Impact in Year 1 on touchable revenue
Fully automated pricing model providing weekly price updates
Visibility to customer level profitability on the full business
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