Case Study: Improving Price Realization
Is Low Price Realization Affecting Your Margin Growth and Profitability?
We harnessed this label manufacturer's business complexity to develop a pricing model, quoting application, and commercial practices to generate $20M+ margin growth and 90% price realization.
The Challenge
A billion-dollar label manufacturer was experiencing margin decline and needed to find and realize new growth opportunities. Their pricing was complex due to a wide range of services, competitive profiles, and product customization. Historically, the client struggled with price realization, vendor cost increases, and measuring pricing initiative impacts. They had limited product segmentation and inconsistent pricing and cost management across business units, highlighting the need for a unified approach and supportive systems to better understand and measure performance.
The Solution
INSIGHT developed a central master data source to eliminate offline excel work and enable data-driven decisions. We then developed a customer pricing model that accounted for the company’s unique value based on products, services, and markets, setting target margin recommendations for both new and existing customers. We also designed and implemented a tailored quoting application, enabling the business to experiment with and adjust model parameters. Additionally, we built measurement tools to manage and assess price impact effectively.
