Case Study: Price Optimization – Manufacturing and Distribution
Challenge: A manufacturer and distributor sought to optimize prices across the product line, improve customer loyalty, and monitor past discounting to increase margins and revenue.
Approach: The manufacturer and distributor engaged Wiglaf Pricing to analyze its current sales data and find areas for improvement. Wiglaf Pricing (1) applied velocity pricing to optimize pricing across the 90,000-SKU product portfolio. Wiglaf Pricing (2) analyzed customer behavior and purchase frequency to design a rebate program experiment to drive customer loyalty and increase wallet share that could be statistically evaluated to determine its profit effectiveness. Wiglaf Pricing (3) conducted a statistical analysis of current discounting practices to identify areas for either data cleansing or execution improvement.
Result: The manufacturer and distributor utilized the Wiglaf Pricing Framework to potentially increase overall margins and revenue significantly through better list pricing, better discount policy, and better price execution.