A client in the technology sector engaged Keenan Reid Strategies to evaluate and enhance their pricing strategy for a $5B product. The expert team refined pricing formulas, developed regional rates, and aligned internal leaders, resulting in over $200M in incremental margin from a new pricing model, despite a price increase. The approach also garnered strong support from various business groups, highlighting the effectiveness of the new strategy.
Situation
A client leading the product group for a $5B technology product sought an experienced B2B Monetization Expert to assess the pricing strategy and rate structures for its existing services catalog.
Given the importance of high-margin services to profitability, it was crucial for the client to ensure that the underlying services remained regionally competitive and did not impact customers’ willingness to purchase add-on services.
Action
Keenan Reid Strategies placed an experienced Pricing Expert who worked with Client product managers, FP&A analysts, and data scientists to:
- Refine pricing formulae, aligning pricing to product value
- Develop regional rates that met economic needs and delivered overall profit targets
- Aligned internal leaders on the ability of new rates to withstand competitive pressures
Results
As a result, Keenan Reid Strategies identified over $200M in incremental margin from the new pricing model and a strong endorsement for the approach from cross-functional business groups, despite a price increase.
