B2B Price-Value Research

In the B2B environment, pricing research can face several challenges, such as: complex products and services, professional buyers, decisions made on financial value and rate of returns, and issues around not selling to the end user.

The following case studies provide examples of our solutions to different types of pricing research problems in the business-to- business (B2B) space.

B2B Heavy ManufacturingA Fortune 500 industrial manufacturing company was experiencing declines in market share and margins in one of its divisions. Pricing Solutions identified the customers’ key value drivers and how much they were willing to pay for various services. This led to the identification of three key customer segments. Pricing Solutions developed customized programs for each segment. The results were dramatic: profits grew by $12 million in the first year, customer satisfaction increased, and market share was regained.

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B2B Distribution Channel Price OptimizationA leading OTC pharmaceutical client sold its products through three distribution channels: Mass, Food, and Drug. The client was uncertain whether it was optimizing its products’ pricing across these three channels. Pricing Solutions analyzed the impact of different pricing and packaging strategies in each channel. Based on the recommendations, the client made several pricing and packaging changes across the three channels, leading to an $18-million annual revenue improvement..

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B2B New Product LaunchA leading animal health pharmaceutical company was launching a new product globally, and needed to establish the optimal introductory price. The product was innovative, but there were several entrenched competitors. Pricing Solutions executed a pricing research study using proprietary methods to determine the optimal price.The deliverable was a dynamic forecasting model analyzing market share by market segment as price was adjusted. Our client implemented Pricing Solutions’ recommendations, and had what it considered “the most successful launch of any division globally.”

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B2B Price/Volume OptimizationA leading U.S. media company wondered whether it was optimizing its advertising prices and market share. Pricing Solutions deployed a price elasticity study to determine the optimal pricing strategy. Based on the recommendations, the client adjusted prices by as much as 35%, and anticipates a payback of $4 million per year.

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