The Opportunity
A leading automotive spare parts supplier had grown rapidly through expanded country coverage, but their pricing methods and tools had not kept pace. The organisation faced a significant gap between existing pricing capabilities and potential, with a sales network lacking confidence in their pricing structures and a pricing team operating at limited capacity.
Market pricing data was available but underutilised, and the complex data landscape made it difficult to act on the intelligence at hand. The business needed a structured approach to unlock the value sitting in their pricing.
Key Results
+7%
Pricing benefit with +3% margin uplift as a percentage of revenue in the first year
50,000
SKUs analysed across 180 branches
Zero
Volume decline from price increases. Price decreases stimulated expected volume gains.
Our Approach
1. Product Price Optimisation
Recommended list prices for 50,000+ SKUs by integrating competitor price data scrapes, Factor Sales data covering thousands of SKUs, and customer market research into a single pricing model.
2. Customer Price Level Setup
Established enhanced UK-derived customer pricing lists with greater market relevance, targeted structures, outlier correction, and elimination of redundant levels. Simplified ongoing management through a cleaner pricing architecture.
3. Customer Migration
Each customer was profiled across three criteria: value to the client, branch-level factors, and local competition. A coded migration tool optimised pricing for each sub-product group per customer. Post-completion review confirmed the exercise was highly margin-positive.
4. Sustainability Setup
Developed three integrated bespoke tools: a Customer Migration Tool, an Enhanced Level Construction Tool, and a Package Creation Tool. The pricing team received full training for independent management of the new methods and daily price management going forward.
Why It Matters
By leveraging data-driven pricing strategies, automotive spare parts suppliers can improve profitability without compromising customer trust. A smart pricing model drives sustainable growth and stronger customer relationships, turning pricing from a reactive process into a competitive advantage.
Want to explore what this approach could look like for your business? Learn more about our consultancy services or get in touch.