The Challenge
A multi-channel manufacturer operating across both transactional and contract-based business was struggling to keep pace with input cost changes. When raw material and supplier costs shifted, pricing reactions lagged behind, leaving margins exposed during the gap between a cost increase and the corresponding price adjustment.
Compounding the problem, discounting logic was inconsistent across the business. Without a shared, defensible framework for how prices and discounts were set, the company had no reliable way to protect contribution margin, identify where it was over-discounting, or give its sales team a consistent story to bring into customer conversations.
The Solution
We built a dynamic pricing system designed to move the manufacturer from slow, manual price reactions to automated, data-driven pricing across its high-volume SKU environment. The solution included:
- A dynamic pricing model that incorporated price elasticity, input cost fluctuations, and competitor behavior so prices could respond to changing market and cost conditions
- Automated pricing logic built to serve both transactional and contract-based business, applying consistent rules across the manufacturer's distinct sales channels
- Daily reporting that flagged underperforming products and instances of over-discounting, turning pricing oversight into a routine, monitored process rather than an occasional review
The Results
The manufacturer increased contribution margins across its SKUs by responding faster to cost changes and applying consistent pricing logic rather than reacting after margins had already eroded.
Automation removed the bulk of repetitive pricing tasks, reducing manual pricing work by 90% and freeing the team to focus on judgment rather than upkeep. Daily flagging of over-discounting and underperforming products kept pricing decisions visible and accountable.
Most importantly, consistent and defensible price logic enabled more strategic sales conversations, turning pricing from a source of friction into a deliberate commercial advantage.