Building Safety Products Manufacturer Finds Raising Prices Across the Board Doesn’t Raise Volume
Shouldn’t raising prices increase sales volume? Not when prices are raised across the board. Despite safety regulations that dictated plants and worksite buy their products, this building safety products manufacturer found that even with customer counts holding steady:
- Order size and order frequency was declining considerably
- 40 percent of the customer base would shift from month-to-month, due to price increases, contributing to poor customer retention
Even with dropping prices 40 percent from list the company didn’t experience volume gains. Recognizing this, the executive team selected Zilliant Price IQ, an AI-based pricing optimization software, to provide the predictive price guidance needed to recover market share while preserving profit.
With the data analytics from Price IQ, they were able to change their pricing approach and instead increase margins by 1.5 Percent.
