Facing significant pricing challenges

Our client, a pan-European business services provider, was struggling with fragmented pricing across geographies.

The existing pricing strategy was a cost-plus approach, and most of the company’s revenues came from 1–3-year contracts, with a small portion from ad-hoc business. As a direct result of its fragmented policies, pricing processes and activities were inefficient and the company was missing out on significant revenue opportunities.

The client was therefore looking for external help to improve pricing through harmonized pricing governance and policies.


Achieving pricing excellence

As a top consulting firm, a-connect was able to provide a seasoned professional with extensive pricing expertise, including B2B pricing, go-to-market strategies, commercial strategies, channel strategies and sales/customer segmentation.

The first step was to ‘fix the basics’ and identify opportunities to improve pricing governance. This included setting out clearly defined activities, process ownership and approvals, and developing a simple, actionable plan to roll out the changes in all countries.

Next, the a-connect project lead worked to optimize the current pricing strategy. This included identifying opportunities for pricing arbitrage in the existing cost-plus pricing strategy, checking for consistent price points for service offerings, and implementing pricing based on customer segments.


Optimized pricing and increased revenue

a-connect helped the client achieve pricing excellence by successfully identifying tactical pricing opportunities and harmonizing pricing governance across the entire organization.

With these improved processes and a new organizational setup in place, the client was able to price much more effectively and consistently. This led to significant revenue increases (once the entire customer portfolio had migrated to the new pricing structure) worth EUR 10–20 million per year over four years.

To find out more about how a-connect’s pricing and project management experts can help take your business to the next level, please get in touch.