building products manufacturer utilizes automated pricing ... - PROS

Customer Success Study: Building Products Manufacturer

Customer Success Study Building Products Manufacturer

Building Products Manufacturer Utilizes Automated Pricing Methods to Increase Performance

Pricing leaders needed a best-in-class solution, centralized data, and pricing agility

Unlock Your Data • Unleash Your Sales 1


Executive SUMMARY

Customer Leading manufacturer of building products in North America, Europe and Asia

CHALLENGE Revenues and margins deteriorating Pricing policies inconsistent True economic impact of customer price requests unknown

SOLUTION PROS Pricing Solutions Suite: Identified and targeted customers for pricing improvement Eliminated profit leaks through consistent pricing decisions across product and customer segments

Provided sales force with essential pricing guidance

IMPACT Two percent uplift in revenue despite softening housing market and economy

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Inconsistent Pricing Policies Cause Deterioration in Revenue and Margin Performance

This leading manufacturer of building products lacked the tools needed to gain insight into customer behavior around pricing and the impact of buying decisions. It handled its pricing tasks through time-consuming and often inaccurate spreadsheets, delaying pricing actions well beyond market effectiveness. Furthermore, the company failed to evaluate the true economic impact of customer price requests or pricing decisions, recognize price sensitivities, or accurately identify underperforming customers. The company’s pricing leaders recognized the need for a solution that would leverage best-in-class pricing methodologies, establish a central transaction data

Objectives: to Reduce Pricing Errors and Improve Sales Force Effectiveness • Minimize pricing mistakes before implementing pricing decisions • Identify underperforming customers for pricing improvement efforts • Understand price sensitivities of specific customers to maximize profit • Automate pricing data collection and processing to save time and eliminate data errors • Increase visibility into all “waterfall components” that affect pricing profitability

repository, and make timely pricing decisions to capture market value. See market trends and SKU movements in the Product Lifecycle Dashboard

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“PROS easily and quickly identifies underperforming customers to be targeted for pricing improvement.”

The manufacturer selected PROS to implement a pricing analytics solution that increases visibility into the manufacturer’s pricing performance and accelerates the analysis of pricing data and creation of pricing strategies. The company purchased PROS Pricing Solution Suite (PPSS) modules, including Scientific Analytics, Price Optimizer, and Deal Optimizer. Before deploying the Scientific Analytics module, PROS received extensive input from pricing and sales teams, and worked with the company’s IT team to create a central repository of transaction data.

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Track revenues and margins by price type for every customer or product, to gain an advantage in deal negotiations


“PROS was selected because of its outstanding partnership culture, science leadership, and fully scalable architecture.”

Scientific Analytics identified and targeted customers for

Deal Optimizer facilitated the company’s ability to negotiate

pricing improvement efforts, and helped the company to

deals more effectively. The module granted access to pricing

understand the price sensitivities of specific customers. In late

guidance and insight into all economic factors that affected

2009, the company upgraded this module to the latest

the profitability of spot deals.

release in only four hours, thanks to PROS’ fully scalable architecture.

PROS Increases Manufacturer’s Revenues by Two Percent Despite Soft Housing and

Price Optimizer developed pricing strategies that were

Commercial Markets

consistent and readily accepted by the manufacturer’s sales

PROS enabled the company to analyze its pricing

force. It also streamlined management of SKUs, and to

effectiveness much more quickly and accurately. Pricing

eliminate profit leaks, it established consistency for pricing

managers easily accessed key performance data to identify

decisions across product and customer segments.

when a price needed adjustment or when a customer’s price request should have been accepted or rejected.

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With initial PROS deployment, the company achieved a two-percent uplift in revenue despite a softening housing

PROS SOLUTION ADVANTAGES

market and economy. Once their ERP initiative is fully

• Automated previously manual price calculations and

deployed, the company expects PROS integration with

tasks

SAP to help it reach a three to seven percent revenue increase, all due to its more effective use of pricing.

• Enabled quick and easy indentification of

underperforming customers to be targeted for

pricing improvement

• Improved contract price quotes by incorporating

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customer cost-to-serve and true transaction

economics into deals


PROS Pricing Solution Suite PROS Pricing Solution Suite™ consists of four modules that work together to get you to Pricing Excellence

Scientific Analytics

Deal Optimizer

Identify segment-specific pricing, find opportunities

Quote the right price for each deal by using

for margin improvement, and forecast and monitor

guidance, market insights, and integrated approval

your progress proactively

workflows

Price Optimizer

REBATE Optimizer

Create the right price for each customer and product

Centralize and manage your rebate programs, and

by setting science-based optimized pricing strategies

measure the effectiveness on deal profitability

and managing price lists automatically Monitor your performance and adherence to policy

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About PROS PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply 27 years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers big data solutions to optimize sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has implemented more than 600 solutions in more than 55 countries. The PROS team comprises more than 700 professionals around the world. To learn more, visit www.pros.com.

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