Pricing/Commercial Gross Margin Improvement

The Kini Group Difference

  • Custom Engagement – Never a cookie-cutter approach
  • KiniMetrix™ Technology – Expert access to Big Data analytics at a fraction of the usual time and expense
  • Sustainable Results – Designed for employee acceptance and ongoing success
  • Years of Trusted Experience – Projects led by veterans from McKinsey, Bain, BCG, and other top-tier consultancies

Targeted Strategies for Ongoing Profit Improvement

A price increase of as little as 1% can improve profits by 11%

  • The first step in profit improvement is knowing when, where, how, and how much to increase prices. Next, you need to get customers to accept the new prices. We show you how.
  • Our experts help you determine the optimal price point for every product and service you offer. First, we use our KiniMetrix™ pricing modules to find hidden insights into pricing improvement. Then, we use those findings to build customized, sustainable programs to help achieve your margin goals.

Pocket Margin Waterfall Services

  • Pocket margin waterfall analyses measure margin erosion from gross revenue to contribution margin or any other level of margin. This process provides a comprehensive overview of all discounts, allowances, and rebates at the transaction level:
  • The Kini Group performs a structured analysis of each margin erosion element to identify sustainable paths to profitable price, revenue, and margin strategies. We then work with you to develop plans to eliminate areas of unnecessary profit erosion.

Pricing Optimization Services

  • Most margin loss starts with insufficient pricing discipline, but establishing discipline is easier said than done. The Kini Group’s Price Optimization services help you set boundaries to enforce sound pricing based on science, not instinct.
  • Set scientifically-calibrated prices at the point of sale – Enhance prices by considering goals on specific accounts and markets, and easily track improvement over time
  • Establish realistic and sustainable pricing – Find hidden opportunities for margin improvement
  • Access decades of expertise to develop sustainable pricing – Our team uses real-world knowledge to help you balance demand, material supply, costs, market needs, and more
  • Segment customers and products to see what you’ve been missing – Analyze price sensitivity and develop value propositions. Forecast the impact of price changes and analyze your performance

Segmentation and Value-Based Pricing Strategy

  • Proper price segmentation maximizes bottom-line profit improvements. However, even dedicated organizations often lack the resources and expertise to recognize and act on key market segmentation nuances when constructing their pricing strategies.
  • Next, we identify low-value products and services that might look good on a gross margin level but drain your profitability. This process of better understanding customer preferences, buying behavior, market forces, and your long-term business goals often reveals opportunities to develop new, highly profitable products.

Our team quickly and efficiently helps your team account for segmentation effects that impact your pricing the most,including:

  • Value-added components within your offerings – Segmentation involves more than just product components. Relevant services and other elements also generate value for your customers. We help you measure and incorporate elements such as quick delivery, special packaging, and other non-intuitive elements into your pricing strategy
  • Customer buying situations – One customer can occupy multiple segments, depending on changing needs from order to order. We work with you to generate a comprehensive overview of each customer’s behavior to determine how individual purchasing decisions influence the value you deliver to your customers, and therefore, the price you should charge
  • Customized PVMC (Price/Volume Mix/Cost) strategies for your business – Including tracking and reporting to measure results and stay on target over time

Increase Your Sales Performance with These Other Solutions from The Kini Group

Contact us today to learn more about our KiniMetrix cloud-based sales analytics solutions, our other revenue and margin management services, and how we can help you sell more successfully.