A contract manufacturer of consumer products sought a pricing strategy expert to guide its pricing negotiation, cost allocation and contract strategy with its largest customer. Given that more than 50% of its business was tied to this client, achieving a well-defined pricing model was essential.
Service Area: Sales & Marketing
Client Type: Consumer Products Portfolio Company
Service Provider Type: Pricing Strategy Consultants
Industry: Manufacturing
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The Need
Optimized Pricing, Contract Strategy for Largest Customer
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A contract manufacturer of consumer products sought a pricing strategy expert to guide its pricing negotiation, cost allocation and contract strategy with its largest customer. Given that more than 50% of its business was tied to this client, achieving a well-defined pricing model was essential.
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The Challenge
Professional Procurement Tactics for Fair Pricing
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The portfolio company faced pressure from the customer’s procurement team, which demanded a 10-percent price reduction over a three-year period. With a complex SKU portfolio and significant operational costs, the company needed to ensure its pricing reflected the value delivered while resisting unsustainable pricing cuts. |
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How BluWave Helped
Connecting with Pricing Consultants for Effective Negotiation
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BluWave connected the portfolio company with an experienced pricing consultant skilled in high-stakes contract negotiations. The consultant helped the team analyze costs accurately, allocate overhead effectively and quantify the unique value they provided to the CPG client. By guiding them through value quantification and defense, the consultant helped the team to engage confidently with the customer’s procurement specialists. |
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The Result
Successful Contract Terms, Protected Margins
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With the consultant’s support, the portfolio company secured a contract that kept prices the same with no discount conceded, as well as future opportunities for incentive-based price increases. This outcome preserved profitability and strengthened the company’s ability to negotiate with other large clients, reinforcing its position as a strategic supplier. |
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