€750K net profit increase through margin approach
BUSINESS CONTEXT
- Structurally low profitability and margin.
- Complex pricing and discount mechanisms.
- Many discussions about cost allocation and pricing.
CUSTOMER NEED
- A tight link between yearly budget and individual prices.
- Proper cost allocation to each individual product.
- Transparency within own organisation.
- A consistently followed approach.
RESULTS
- A net profit increase of €750K per year.
- Simple and consistently followed pricing & discount system.
CHANGES
- A more margin-focused approach.
- Less internal pricing discussions.
- Learned the true price effect in our market.
- Better cooperation between sales & finance.
R&G APPROACH
- Analysed margin differently from normal accounting approach.
- Developed a new margin & cost structure.
- Discussed impact on customer level.
- Ensured sustainability.
