The client was an SME in the measurement technology sector. The management hired the interim manager to increase profitability. The sales organization had not been sufficiently trained in dealing with prices at the beginning of a restructuring process. In addition, the unique selling points were not marketed. Furthermore, there was no professional price management and the opportunities for price differentiation were not being utilized.
SWOT analysis prepares sales strategy
In order to put the future sales strategy on a solid foundation, the interim manager began the project with a comprehensive SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. First, he organized workshops with all relevant stakeholders to determine the company's position. The focus of the analysis was a comparison with the competition. What opportunities do the company's products, technology and services offer? And at what prices can they be marketed?
New gross price list with discount structure
The interim manager used the results of the SWOT analysis to derive a sales strategy tailored to the market, which was based heavily on the company's unique selling points. He reviewed these USPs in selected customer meetings. A new gross price list including discount structure was then created. The interim manager's tasks also included making the new price structure known to the major key accounts (existing customers). To this end, he visited selected customers and explained the pricing structure with subsequent implementation.
Price management introduced
The interim manager also initiated systematic price management. The measurement technology company now keeps a constant eye on its competitors and reacts by adjusting its pricing if necessary. Or the company adds services to its products that are currently establishing themselves on the market or represent unique selling points.
Return on sales grows - customers stay
As a result, the new price management and the new sales strategy, including communication of the unique selling points, led to a significant increase in earnings (EBIT). A and B customers accepted the new prices and remained loyal to the company. So far, the return on sales has increased by more than ten percent.
