Success Stories/Pricing and Promotions/Medical Equipment Manufacturer

Pricing Analysis - Medical Equipment Manufacturer

How our Pricing Analysis helped our client to add $5 Mn to the EBITDA

Overview

Client is a global manufacturer and marketer of specialized devices for a medical therapeutic area, and sells its products in ~100 countries worldwide. Company had an opportunity to streamline the Pricing of its products across various customers, so as to realize quick gross margin improvement opportunities.

Merilytics partnered with the client to identify Pricing opportunities and help the pricing directors to re-negotiate the prices for customers across globe.

Our Value Addition

  1. Developed the methodology for pricing analysis based on relative discount and gross margin of the products across customers
  2. Analyzed five years of invoice level data and built a PowerPivot model enabling simulation of various triage scenarios to identify customer-SKU combinations for pricing negotiations
  3. Finalized the model assumptions for pricing recommendations by analyzing the sensitivity of impact for various pricing scenarios
  4. Recommended prices for each product-customer-region combination and facilitated price negotiations discussions for the Pricing Directors

Impact

  1. Prices re-negotiated based on the analysis helped the company to add ~ $5 Mn to EBITDA based on 50% success rate of the pricing negotiations
  2. The analysis helped the company understand the current relative pricing situation across customer and products, and develop a standardized pricing strategy across company

Results

Harmonized pricing
50%
success rate of the pricing negotiations
$5
Mn to EBITDA
Our relationship with Merilytics has worked very well. You have consistently delivered high quality good work. Well Done!!
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