Equipment Rental Provider
Tailored Quoting Application Enhances and Streamlines Pricing Process
Optimizing Quoting & Pricing: A Centralized Approach for Sustainable Growth
An equipment rental provider implemented a custom quoting application and approval workflow, driving $85M in price impact over four years.
As an equipment rental provider expanded through growth and acquisitions, decentralized pricing and quoting inefficiencies led to margin inconsistencies and unprofitable sales behaviors. Without a standardized approval process, sales teams lacked guidance on pricing strategies, discount structures, and value-added services. To address these challenges, the company developed a custom quoting application with central governance, optimized discount structures, and established KPI monitoring. This transformation resulted in $85M in price impact over four years, improved margin rates, and a scalable pricing structure for future growth.
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Situation
Decentralized Pricing Creates Margin and Quoting Inefficiencies
- Historically made pricing and operational decisions at the local level – but recent growth and acquisitions indicated a need to standardize and centralize
- Gaps in the quoting process led to undesired, unprofitable behavior from the sales team
- Decentralized and manual processes contributed to wide price and margin variation across like products / orders
- Value provided wasn’t fully captured for expedites, extended rental periods, etc.
Approach
Centralized Quoting and Pricing Framework for Greater Control and Profitability
- Codified market-relevant list price model to consider local dynamics and equipment availability
- Optimized discount structure from list price based on customer performance and potential
- Implemented custom quoting application and approval workflow with central governance
- Established KPI monitoring and reporting with a regular cadence for internal action-planning
Ensure more quotes are using the process more of the time
Change management such that most opportunities follow the recommended rates across equipment, labor, and ancillary
Consistently increasing financial results through refinement of process to improve win rate and margin rate
Sustained Pricing Impact
Exceeded goals and enabled ongoing performance through structured pricing
