Client€30B Global Industrial Technology Company
SprintAn 8 to 10 week sprint
Fieldwork9 local unit representatives
Aftermarket and Service Business
Five units, five different prices
A global industrial technology company ships spare parts and modules from one service centre to sales units in more than forty countries, and then loses sight of the price. Once a part leaves the centre, the local unit sets its own list price on its own formula.
20 scenarios
Pricing scenarios modelled. Four central pricing levers tested against five local sales units, each scored for its likely effect on selling price, local margin and market share.
5 countries
Local price build-ups documented across four product groups, from transfer price to selling price, including every markup level and every channel discount, unit by unit.
A note on sourcing. Every figure here comes from a SprintlyWorks client engagement. Clients are described, never named. Where a figure is identified or modelled rather than banked, the line says so.
01
The problem
Some build up from a recommended end user price, others from the transfer price. Markups, discounts and margins differ by country, by product group and by who is buying, including other units of the same group. The centre could not see any of it.
02
What the sprint set out to do
- Map how each local sales unit builds its list and selling price
- Document markup and discount levels by product group and customer segment
- Identify the internal and external factors driving each local pricing decision
- Test how four central pricing levers would land in each market
- Show the centre where it can act, and where it cannot
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