Case Industrial service provider

    Pricing model evaluation for new service area

    About the company

    The company is a Nordic industrial service provider with a global reach serving builders, building owners, and facility managers.

    • Company size: Large cap
    • Personnel: >10K

    Challenge – Choose the right pricing model for new service

    The company was about roll-out a new service model as a part of a bigger product launch. There was still uncertainty if the planned pricing model was the right fit for the soon-to-be rolled-out service. It was decided that additional validation was needed before product launch.

    As qualified and available internal resources were scarce, the company looked instead of a flexible external partner who could offer help with the critical component of the product launch. Market research and customer interviews had already been done, and hence support was needed to analyse the current model and give recommendations on how the pricing model could be developed further. In addition, financial performance with different price levels was decided to be included in the project scope.

    Capacent was selected as a partner among shortlisted consulting companies due to the customer-centric approach with clear scoping of the project, flexibility, and ability to understand the current challenge the company was facing. The project was started quickly and finished on time as planned.

    Case Industrial service provider

    What was done – Evaluate pricing model and build scenarios for financial performance

    Project steps

    1. Our work was begun by analysing the service packages, key features, and customer benefits by going through all the materials available to us, including technical specifications of the products, to truly understand what the services were all about. A clear understanding of customer value drivers and reference points for service are critical when evaluating pricing models.

    2. Market research with customer analysis was done previously. Due to the project's short timeframe, internal experts closest to the markets were decided to be utilized to gather more information from the customer interface. The company operates with a direct sales force, and hence the selected pricing model must offer a clear way of communicating value and defending price.

     3. A key part of the project was analysing the pricing model in a detailed way by de-constructing the planned model and building different scenarios for various price models with different price metrics. These scenarios were analysed and compared together to be able to deliver and present clear recommendations in a workshop with internal experts. Utilizing a broader knowledge base gives an opportunity to leverage lessons learned from previous product launches and build broader acceptance towards the chosen path.

    Key deliverables

    • Clear recommendations on the service pricing model and pricing metrics per service area
    • Business case and scenario analysis for price level ranges
    • Internally aligned steps on how to move forward

    Book a meeting

    Shall we improve your pricing and discount models, too? Book a meeting with Antti Kuusenmäki or send us a message and let's talk more!

     
     

    Our services

    Customer profitability Management

    Customer Profitability Management

    We help you improve customer profitability to achieve your profit targets by smarter pricing and better cost efficiency.​

    Working Capital Optimization - Capacent

    Working Capital Optimization

    We help release cash from operations to finance your growth and strategic initiatives by optimizing your working capital.

    Supply Chain Management - Capacent

    Supply Chain Management

    We help you turn your Supply Chain into a competitive advantage.