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.