Implementation of a price margin project to leverage margin potentials

A company with a broad customer/product portfolio and a leading market position.
Europe-wide sales are carried out by own sales organization, in combination with a historically grown network of distributors
The management team critically questions the existing transparency with regard to contribution margins
Objective: Create transparency and define measures to improve low-profit products, customers. Introduction of a results-oriented customer care model

Data collection from a wide variety of sources and subsequent data evaluation. Definition of recommendations for action in order to improve the situation with products and customers with poor results.
Determination with marketing and sales team which condition types (e.g. discounts, packaging types) will not be offered in the future to minimize outliers (business rules)

Attention for profitability-oriented portfolio management shown – „facts instead of assumptions“.
Action packages agreed for critical customers/products: Price increases, product adjustments/phase-outs, transfer of certain customers to dealers
Total margin increased by > 5% in year 1 (calculated from end of project)