Case Study: Leading Plumbing/HVAC Distributor

Profitable Pricing
ProfitOptics was instrumental in configuring and managing our most profitable technical solution ever implemented. Their ability to understand our business and data, combined with their depth of experience, provides us a significant competitive advantage.
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Vice President
Corporate Sales Operations
Our custom developed ProfitOptics Pricing Module, and some sales training, helped this distributor get to a model where >95% of price increases were accepted by customers, driving an immediate GP% improvement of ~1.2%.
Challenge
Our client knew their pricing practices were ineffective in capturing a customer’s full willingness to pay. With 100,000+ possible pricing combinations, decision makers were paralyzed by the amount of non-actionable data.
Solution
ProfitOptics configured the Price Manager module, a web-based application that identifies pricing opportunities using a highly sophisticated rules-based engine. Local pricing decision makers created pricing projects to test and model a variety of pricing scenarios to minimize risk while maximizing opportunity. Once projects were approved, price changes were logged and automatically updated in the company’s system. Robust reporting and benefit tracking were provided to ensure accountability and quantify GP$ improvements.
Results
>95% of price increases were accepted by customers, driving an immediate GP% improvement of ~1.2%. Pricing complaints were confidently handled through price objection training and access to supplemental data.