Background
A printing company was not pleased with recent performance. A cost-based pricing strategy had caused the company to lose orders it should have won, win unprofitable business, and inadvertently put downward pressure on industrywide price levels.

Our client asked for help improving pricing strategy, tactics, and frontline capabilities.

Analysis and Teamwork
Our team assisted the client in developing a new pricing approach that segmented customers and individual orders – for example, by customer size, type, industry, order size, print color, and application – and allowed the company to tailor bid prices to these dimensions.

We also helped the company refine its price structure to influence and reward positive customer behavior. Finally, the entire sales force received training in value selling and negotiating.

Results
The resulting program led to a 4 percent increase in average price levels and a nearly 50 percent boost in operating profits.