Pricing Strategy for North American Distributor

The Challenge

An $80M North American industrial distributor relied on cost-plus pricing, with limited differentiation across products, customers, and applications. Inconsistent discount controls and misaligned sales incentives contributed to margin leakage and weak pricing discipline.

Our Approach

Redesigned pricing architecture and discount policies to reflect customer segments, product differentiation, and order volumes. Established pricing governance and approval processes, realigned sales incentives, and trained sales teams on value-based selling and negotiation.

The Impact

• 9% revenue growth and 3 percentage point margin improvement within six months, validated against an unchanged-price control group

• Improved pricing discipline through differentiated margin targets, discount governance, and sales incentives

• Sustainable commercial capabilities supported by sales training and ongoing performance measurement