Product Portfolio Repricing

$150M Industrial Products Company

Background

  • The industrial products company was formed through a series of acquisitions over the last 10 years
  • It is an aftermarket distributor of engine parts, including overhaul kits for agricultural and on-road truck engines
  • The company sources parts overseas and assemble products onshore

Contributions

  • Sourced and analyzed all necessary data, which included inbound and outbound transaction level data and customer account details
  • Conducted statistical analysis of customer data to identify segments, coordinated qualitative process of deriving business-appropriate segments, and reassigned accounts
  • Led both methodology creation and detailed calculation for all prices, resulting in trust from clients and credibility of outcomes
  • Estimated expected benefits using highly-detailed back-testing methodology

Results

  • Segmented customers, combining all acquired customers into a single segment structure
  • Created new pricing methodology and calculated new prices for 40,000 products in 10 segments
  • Worked cross-functionally to execute on pricing, uploaded all segment definitions and prices to system of record, and monitored technical success