Our client had more than 10,000 individual SKUs that were sold to 30,000 major eye care groups across the U.S. using more than 1000 pricelists. They lacked an understanding of customer pocket margin, causes for margin leakage, effectiveness of various price lists for achieving ASP growth, and impact of different pricing/ promotion tactics on price-volume-mix. They evaluated various integrated pricing software solutions, but concluded that these were not practical due to cost, data requirements, and maturity of their organization.
CoreCompete created a pricing data lake by combining data from more than six enterprise systems. We delivered self-service pricing analytics dashboards and tools for the pricing organization to systematically gain visibility into the customer pocket margin leakage, assess the impact of pricing changes on revenue-mix performance, and compare price lists for account level value capture. In addition, cross price-elasticity models were developed to estimate volume impact of price changes on the overall portfolio.
CoreCompete delivered the key pricing analysis capabilities, enabling our client to identify more than $20 million in pricing benefits through more effective discounting and streamlining the annual rate increase program. In addition, the pricing team has been leveraging the integrated pricing data lake to create additional analytical models and custom applications for improving price execution and providing guidance to the sales team on key account price negotiations.