SITUATION
A leading med-tech manufacturer spanning North America and Europe needed to drive a 5% improvement in net price realization. Despite strong sales growth, they faced high discount variability across thousands of SKUs and struggled to explain the drivers behind gross profit and net revenue changes. Without clear analytics or consistent discount controls, sales teams often deviated from targets, and leadership lacked a quick way to pinpoint margin leakage or model profit potential.
OBSTACLES
- No Quick Access to Opportunities
Leadership had difficulty identifying which customers, product lines, or countries were driving the largest margin leakage or discount outliers. - Fragmented Freight and Rebate Policies
Freight was frequently waived or inconsistently applied, with little insight into how these concessions affected profit. Rebates were often ad hoc and not linked to volume thresholds. - Significant Discount Dispersion
Discounts on similar products for similar customer segments varied widely, eroding profitability and making it difficult to develop a coherent pricing strategy. - Limited Sales Team Tools
Sales reps lacked a straightforward way to see where they could improve prices or reduce unnecessary discounts. Without user-friendly dashboards, they struggled to course-correct.
ACTIONS
Within 6 weeks, Revify’s cloud-based solution integrated the client’s ERP data to deliver a real-time, enterprise grade Pricing & RGM Analytics Platform to help drive both incremental net revenues and EBITDA impact:
1. KPI Dashboard & Gross Profit Drivers
Revify’s standardized executive dashboard quickly revealed which factors (price, volume, mix, cost) were driving or hurting margins, providing a clear roadmap for corrective measures.
2. Discount Analysis & Curve Visualization
Outlier discounts surfaced instantly, helping leadership redefine discount approval levels. The discount curve chart enabled real-time visibility into overall discount behavior, prompting corrective action.
3. Pocket Price Waterfall & Scenario Analysis
By detailing each step from list to pocket price, including freight fees and final rebates, teams easily diagnosed where margins dropped off. With Revify’s scenario analysis, finance estimated the gains from stricter discount caps before finalizing policy changes.
4. Threshold Alerts & Training
Automated notifications flagged reps who exceeded newly established discount ranges. Short training modules helped the commercial team adopt these best practices, fostering a pricing insights-driven mindset.
RESULTS
By systematically closing discount gaps, the company met its 5% net price realization goal in the first year. Leadership gained clarity on the root causes of margin erosion and aligned the sales force on more consistent discounting behavior. With Revify’s RGM Analytics modules, they established an insights-driven foundation for future value-based pricing and easily scaled best practices across multiple geographies – maximizing profitability without increasing IT complexity.
