A world leader in specialty tapes for automotive, packaging and industrial assembly was focused on developing new products and building market share. While the firm’s revenues grew impressively, margin improvement opportunities through price optimization went unrealized. At the same time, the industry was nearing capacity and competitors began pushing prices upward. The company knew that the time was right to optimize prices, but did not know where improvement could be realized, or in what amount.
Industrial Tape Manufacturer Improves Price Revenue by 5.06%
The Problem
The Solution
Price Point Partners’ pricing experts were retained to provide the tools, analysis and processes to identify how and where to improve price levels. By measuring customer value perceptions, providing sound analytical tools and providing tactical assistance including sales coaching, the client realized a record margin improvement.
The Results
Within one year, the company realized a pricing improvement of 5.06% for goods sold to customers who were not under pricing agreements. Long term, the client was able to adopt new strategies and procedures to maintain a pricing discipline that provides regular pricing “maintenance” to assure profitability.