HVAC Services Provider
Optimized Pricing Through Centralized Decision-Making
Centralizing Pricing for Growth: A Tailored Bid Application for HVAC & Plumbing Services
A $1B HVAC & plumbing services provider implemented standardized pricing, centralized bid management, and enhanced reporting, driving $130M in impact over five years.
As a $1B HVAC & plumbing services provider expanded through acquisitions, disparate pricing structures and limited visibility into product offerings created inefficiencies and margin variability. Regional differences in pricing culture and fragmented data systems further complicated pricing decisions. To address these challenges, the company developed a tailored bid application to centralize pricing, improve reporting, and enhance profitability. By implementing standardized pricing across 10 regions and equipping sales teams with data-driven guidance, the company achieved $130M in financial impact over five years, strengthening its competitive position.
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Situation
Disparate Pricing Systems and Limited Data Visibility Hinder Growth
- 5+ years of INSIGHT partnership across multiple private equity sponsors
- Dramatic growth through acquisition resulted in multiple ERPs and disparate processes
- Limited visibility to product offering vs. components on the bill of materials
- Lack of understanding of company data with inability address pricing challenges
- Regional GM culture resulted in significant variation in process and approach across regions and branches
Opportunity to measure and shift mix performance to drive margin improvement
Approach
Standardizing Pricing and Centralizing Bid Management for Greater Control
- Conducted extensive branch data collection, merged ERPs, and developed profitability drivers based on qualitative and quantitative learnings
- Implemented standardized pricing across 10 regions
- Established a new compensation model for the sales team
- Built a tailored bid application to centralize pricing decisions and improve reporting and measurement
- Equipped sales teams with guidance for profitable good / better / best scenarios, upselling packages, and technology application for effective point-of-sale conversations
Designed Pricing Algorithm
Intentionally Shape Differentiation
Balanced scorecards
View a snapshot of individual rep performance and to quickly identify best practices and improvement areas
Empowering Sales to Drive Impact
Quoting tools and incentives enabled $130M in growth over five years
