The Challenge

This foodservice equipment provider wanted to implement price increases due to significant variations they observed in labor rates and parts pricing. In order to build support for any pricing action, the business sought an understanding of market tolerance of price increases, key purchasing factors, and what would cause customers to switch providers.

The Solution

INSIGHT began by surveying 250 customers to identify voice of market insights related to price increases for both parts and labor. Simultaneously, we completed 16 in-depth interviews with foodservice equipment decisions makers across key foodservice areas. We also gathered intelligence on alternative service providers, contract terms, and barriers to switching providers.
    We learned that their customers were largely indifferent to moderate price increases for both parts and labor, and that customers value their fast availability for repairs and high trustworthiness. This enabled confident price changes without risking customer or volume loss and provided points of value for the business to promote and leverage within their pricing strategy.
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