Explore how Intuilize's professional services help distributors redesign their pricing structures to increase consistency, improve margin management, and enhance customer experience.
Many distributors struggle with pricing structures that have evolved organically over time, resulting in inconsistency, complexity, and missed profit opportunities. Intuilize's Professional Services team offers comprehensive support for pricing structure redesign, helping you create a more strategic, consistent, and profitable approach.
Pricing Structure Assessment and Redesign Process:
Intuilize follows a systematic process to evaluate and redesign your pricing structure:
- Current State Assessment:
- Analysis of existing pricing libraries, tiers, and rules
- Mapping of pricing decision flows and approval processes
- Evaluation of pricing consistency across similar products and customers
- Identification of system constraints and capabilities
- Documentation of organizational knowledge and undocumented pricing practices
- Gap Analysis:
- Benchmarking against industry best practices
- Identifying inconsistencies and inefficiencies
- Assessing margin leakage opportunities
- Evaluating technology limitations
- Analyzing customer and product segmentation alignment
- Future State Design:
- Development of pricing hierarchy recommendations
- Creation of formalized customer segmentation model
- Design of product family grouping structures
- Establishment of margin targets by customer/product segment
- Definition of override authority and approval workflows
- Documentation of pricing rules and exception handling processes
- Implementation Planning:
- Development of phased implementation approach
- Creation of communication and training materials
- Design of performance measurement framework
- Risk assessment and mitigation planning
- Timeline development with key milestones
Key Components of Effective Pricing Structures:
Through our redesign process, Intuilize helps you implement proven structural elements:
- Tiered Customer Pricing:
- Development of clear, attribute-based customer and product segmentation
- Establishment of appropriate pricing differentials between tiers
- Creation of migration paths as customer relationships evolve
- Implementation of consistent tier-based pricing rules
- Product Group Alignment:
- Classification of products into logical pricing families
- Ensuring consistent margins within product groups
- Establishing appropriate price relationships between similar items
- Implementing product lifecycle pricing strategies
- Pricing Rules Framework:
- Development of guidelines for baseline pricing calculations
- Establishment of volume-based pricing rules
- Creation of new product pricing protocols
- Implementation of competitive response guidelines
- Pricing Governance Model:
- Design of pricing committee structure and responsibilities
- Development of pricing review calendar and processes
- Creation of exception handling protocols
- Establishment of continuous improvement mechanisms
Implementation Approach:
Intuilize's implementation methodology focuses on minimizing business disruption while maximizing adoption:
- Phased Deployment:
- Starting with less sensitive areas to build confidence
- Gradually expanding to more complex segments
- Allowing for adjustments based on market feedback
- Technology Integration:
- Configuring your ERP system to support the new structure
- Developing necessary data extraction and loading processes
- Creating management reporting and monitoring tools
- Change Management:
- Developing comprehensive training materials
- Conducting role-specific training sessions
- Creating reference guides and job aids
- Providing ongoing coaching and support
- Performance Monitoring:
- Establishing baseline metrics
- Implementing regular performance reviews
- Identifying continuous improvement opportunities
- Documenting successes and lessons learned
The result is a pricing structure that balances strategic objectives, operational efficiency, and market realities—delivering sustainable margin improvement while enhancing pricing consistency and customer experience.
When redesigning your pricing structure, involve representatives from sales, product management, and finance to ensure all perspectives are considered and to build cross-functional support for the changes.