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CASE STUDY

The fix for cost-plus pricing costing Portcos millions.

Discover how an industrials supplies Portco shifted from cost-plus pricing to a market-based strategy, unlocking $3M in profits and 219 bps in margin growth.

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The challenge

Outdated pricing. Lost profits. Declining confidence. 

This PE-backed industrials supplies company faced mounting challenges after a series of acquisitions:

  • Profit Losses: Reliance on cost-plus pricing led to $3M in lost profit in one year alone.
  • Sales Confidence Erosion: Market nuances were overlooked, causing Sales reps to lose confidence in pricing decisions.
  • Scalability Issues: Scaling and sustaining profitability while continuing growth felt out of reach.

They needed a solution to regain market relevance, restore Sales trust, and scale pricing strategy across their acquisitions.

The solution

Market-based pricing that works.

With our Pricing-as-a-Service(PraaS) solution, the company transitioned to a data-driven pricing model designed to deliver results:

  • Customer Segmentation: Tailored pricing strategies to meet local market demands.
  • Real-Time Pricing Guidance: Provided Sales reps with location-specific, deal-specific price recommendations.
  • Performance Dashboards: Ensured compliance and continuous improvement with measurable insights. 

How a PE-backed Portco recovered $3M in profits with data-driven pricing.

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The results

Measurable impact. Immediate results.

By implementing a market-based pricing approach, the company achieved:

  • 219 bps of Incremental Margin: Boosting profitability without affecting sales volume.
  • 96% Sales Rep Compliance: Restoring confidence in pricing strategies.
  • $3M in Recovered Profits: Realizing immediate gains after breaking the connection between cost and price.

Ready to unlock hidden profit in your portfolio?

Schedule a brief intro call with our experts to learn how your Portcos can achieve measurable margin growth with Pricing-as-a-Service™. We'll tailor our insights to your unique challenges and show you exactly how to drive similar results for your portfolio.

Book your intro with our pricing experts

 

 

Trusted by:

Wynnchurch

 

SUPPLY ONE-forms

 

Audax

 

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Bain

 

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Meet our team:

Jared-circle

Jared Wiesel

SVP, Manufacturing & Distribution

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Tom Fennel

VP Business Development, Manufacturing & Distribution  

About us:

A pioneer of precision pricing models, Revenue Analytics is an enterprise technology company that partners with leading Private Equity firms and their portfolio companies to solve their most complex pricing challenges.

Backed by over a decade of experience working with Private Equity, Revenue Analytics created Pricing-as-a-Service™ (PraaS) to equip Operating teams with the necessary tools and insights to refine pricing strategies across their industrials portfolio companies. Our data-driven methodology, supported by a cross-functional team of industry pricing experts, is proven to create value through sustainable profit growth and improved commercial maturity. 

Create lasting value for your Portcos

Learn more about the only margin expansion and commercial growth solution built specifically for Private Equity and their portfolio companies.

Talk to an expert