The Opportunity
A major European distributor in the home improvement sector identified an opening to strengthen pricing approaches and drive margin growth while improving customer price perception. The business operated within a highly competitive market affected by discounters and online competitors.
Leadership recognised inconsistent pricing practices across regions and product categories as an untapped profit opportunity. The sales team operated without confidence in pricing decisions, no dedicated pricing team existed, and market pricing data was unavailable. By aligning prices more closely with customer value and market dynamics, the business sought to unlock hidden profitability and establish a sustainable pricing culture.
Key Results
+2%
EBITDA uplift within 12 months through focused pricing transformation
Zero
Volume declines and zero customer churn resulting from discount changes
Enhanced
Sales team confidence in pricing negotiations through the pricing committee process
Our Approach
1. Product Hierarchy and Classification
Developed a differentiated pricing strategy across product classes: Key Value Items, Fast Movers, and Shadow Products. Classification incorporated brand relevance and revenue contribution insights from sales and category experts, enabling market-aligned pricing for high-visibility products and margin optimisation for niche items.
2. Customer Terms and Discounting Logic
Created an enhanced discounting framework based on customer segmentation and value proxies including size and growth level. This improved market relevance, enabled more targeted pricing actions across customer groups, and corrected pricing outliers while eliminating redundant discount levels.
3. Sales Workshops
Interactive sessions secured stakeholder buy-in and refined solutions. Workshops gathered critical insights, defined clear roles and escalation levels across regions, and established a segment-based organisational approach to improve decision-making and accountability.
4. Pilot and Implementation
Structured rollout began with pilot testing in selected sites before scaling across business units over three months. A monthly pricing committee and performance dashboards were introduced to monitor results, drive data-led decisions, and embed best practices across the sales team.
Why It Matters
In today’s competitive retail environment, pricing is one of the most powerful levers to protect margins and drive growth. By addressing margin leakage and aligning prices to customer value, businesses can unlock significant profit potential while improving customer trust and perception. A structured pricing approach delivers rapid financial impact and builds the internal capabilities needed for sustained commercial success.
Want to explore what this approach could look like for your business? Learn more about our consultancy services or get in touch.