Materials Manufacturer

What Do Your Customers Value When Making Purchasing Decisions?

Voice-of-market insights revealed purchasing preference and price sensitivity enabling a 15% price increase with limited customer push-back.
Case Study

Transforming Pricing Strategy with Market-Driven Insights

Uncovering competitive advantages and market dynamics to optimize pricing and differentiation.

A leading materials manufacturer sought to align its pricing strategy with market expectations while exploring opportunities for differentiation. INSIGHT conducted 29 in-depth interviews with end-users and distributors across the oil and gas and municipal water sectors. Our analysis revealed low price sensitivity among customers and significant barriers to switching, alongside untapped competitive advantages. These findings empowered the business to confidently implement price changes and focus on delivering additional customer value, driving both differentiation and strategic growth.

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Situation

Sharpening Strategy with Market and Competitive Insights

Leveraging distributor and market feedback to optimize pricing and uncover differentiation opportunities.
  • Client required better insight from the market and its distributor partners to inform its list price strategy
  • Client also wanted to identify any opportunities for differentiation from competitors and alternative products

Approach

Deep Dive into Key Market Segments

Revealed insights from end-users and distributors in oil & gas and municipal water markets
  • Conducted 29 in-depth interviews with end-users and distributors in oil & gas and municipal water segments

Representative Customer Insights

We buy these products based on performance, ease of application, underground/temperature performance, always used and availability. Price is secondary.

City of Tucson

The key drivers for using one vendor over another are performance, have always used them, and reps/service.

Total Petrochemicals

DISTRIBUTOR is a distributor/rep. It offers engineered piping systems, distributes products and also acts as a sales rep organization.

UPSCO

If it works, I stick with it and I’m not interested in other brands. If it works really well why change? We don’t like to change unless there is a reason to change.

City of Palo Alto

DISTRIBUTOR is critical in terms of knowledge of these products, distribution, etc. DISTRIBUTOR is who we rely on for recommendations.

SoCal Gas

I don’t think pennies on the dollar or a small percentage price movement are a reason to move from one supplier to another as there is more than just price (service, support, etc..) that comes into play.

Denver Water

Uncovering What Drives Purchase Decisions

Performance, trust, and support outshine price as top priorities for end-users and distributors.

Product performance and a history with the product are the key purchase drivers

End Users value product performance, a history with the product and supplier, and ease of application above price

Distributors can play a role in product knowledge, training and support

Impact

Leveraging Strengths to Drive Pricing Power

Low price sensitivity and strong after-sale service enabled a 15% price increase with minimal resistance.

Found low price sensitivity among end users; high barriers to switching and little product differentiation
Client’s competitive advantage is based on after-sale service and there was opportunity to enhance differentiation by leveraging this strength
Market intelligence led client to increase list prices 15% with limited customer push-back

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