Pricing Strategy & Margin Optimization
Every 1% you recover in pricing flows straight to the bottom line.
At typical manufacturing margins, that 1% becomes 10% more EBITDA.
Also, Most manufacturers lose 2-5% of revenue to pricing leakage they can't see. We find it, fix it, and build systems so it stays fixed.
Recover the Margin You're Leaving on the Table
The Problem: Your Pricing is Probably Costing You Millions
You've built a successful manufacturing business. Your operations run. Your customers keep coming back.
But somewhere between the quote and the invoice—and again between the invoice and the cash—margin disappears.
The culprits are hiding in plain sight:
- Sales reps giving "just this once" discounts that happen every time
- Freight allowances that erode margin on your best customers
- Rebates you're paying but not tracking
- Quote-to-invoice variances nobody reconciles
- Payment terms that cost more than you realize
The problem isn't that your team is doing something wrong. The problem is that without visibility into your pocket price—what you actually keep after every discount, allowance, and leakage—you're making decisions in the dark.
How We Fix It?
We don't sell software. We don't run training workshops and leave. We work inside your data—your ERP, your quotes, your invoices, your team—to build pricing intelligence you can actually use.
What We Deliver?
Diagnostic (4-6 Weeks)
- Proof-of-claim analysis with your real data
- Quantified margin leakage by source
- Prioritized action roadmap
- Financial business case for leadership
Implementation (3-12 Months)
- Power BI dashboards your team actually uses
- Customer segmentation
- Quote win prediction models
- Pricing optimization and implementation
- Price-Volume-Mix decomposition for management reviews
- Ongoing margin monitoring and alerts
Sustainability (Ongoing)
- Monthly performance reviews
- Model retraining as your business evolves
- Training for your pricing and sales teams
Pricing Analysis
Based on your company challenges a combination of the following analysis can be applicable.
Price Volume Mix
Decomposes revenue changes into price, volume, and mix components. Reveals whether growth stems from pricing power or hidden mix shifts eroding margins.
Quote-Win Prediction
Machine learning model predicting quote success probability at 88-95% accuracy. Enables sales prioritization and optimized pricing on high-probability opportunities.
Customer Tier Classification
Segments customers by profitability and strategic value beyond revenue. Identifies hidden gems and margin destroyers for differentiated pricing strategies.
Price Elasticity Analysis
Quantifies customer price sensitivity across products and segments. Identifies opportunities for strategic increases on inelastic items while protecting sensitive volumes.
Margin Waterfall Analysis
Visualizes profit leakage from list price to pocket margin through discounts, rebates, and freight. Exposes 15-25% invisible margin erosion.
Economic Value to the Customer (EVC)
Quantifies total value delivered versus next-best alternative, including price and differentiation value. Enables value-based pricing that captures fair share of customer benefits created.
Contract Profitability Analysis
Evaluates profitability of long-term agreements including volume commitments and escalation clauses. Reveals which contracts build versus destroy shareholder value.
Discount Effectiveness Tracking
Measures ROI of promotional pricing and discount programs against baseline performance. Identifies which discounts drive incremental volume versus margin giveaway.
Why Manufacturers Choose us?
We're Built for Mid-Market Manufacturers with $25M-$250M Revenue
- Too complex for pricing software alone. Their black-box AI makes recommendations you can't audit or explain to your CFO.
- Too small for the big consulting firms. McKinsey and BCG price for Fortune 500 budgets. Their junior analysts fly in, build PowerPoints, and fly out.
- Too custom for one-size-fits-all. Your job shop or make-to-order environment doesn't fit neatly into distribution-focused tools.
We fill that gap.
What Makes Us Different ?
| What Others Do | What We Do |
|---|---|
| Black-box AI recommendations | Transparent Power BI dashboards and calculation you understand and own |
| Platform lock-in (adopt our software) | Works with your existing Microsoft stack* |
| Enterprise-scale projects ($250K+) | Right-sized engagements based on ROI |
| Generalist consultants | Deep B2B manufacturing and distributors experience |
| Pricing OR supply chain OR forecasting | Unified analytics connecting all three |
*Microsoft-Native, No Platform Lock-In
Your team already uses Excel and Power BI. We build on that foundation—not around it.
Our analytics run on Microsoft Fabric, connecting your ERP, CRM, and operational data into a single source of truth. When the project ends, you own everything. No platform dependency.
How to Start ?
Start With a Diagnostic
We don't ask you to commit to a 12-month engagement before you've seen results.
Step 1: Discovery Call (30 min) We'll discuss your pricing challenges, data environment, and whether we're a fit.
Step 2: Diagnostic Engagement (4-6 weeks) Working with your real data, we quantify the opportunity and build the business case.
Step 3: Decision Point You see the numbers. You decide whether to proceed.
Low risk and you can seen proof in your own data.
Customized dashboards
With our experience and best practice, we customize your dashboard around your key KPIs
References & Testimonials
$9 million in margin recovered in one year. Regional managers had been cutting prices thinking volume would make up for it. It didn't—margins collapsed. They centralized our pricing, built real-time alerts for unauthorized discounts, and implemented an approval process that actually works. We recovered 11% margin and morale across the company turned around.
ADEXMA identified $550K in annual margin improvement from a $110K investment. The ROI was clear within 90 days.
$9 million in margin improvement—during a tariff crisis. When 10-25% tariffs hit in 2018, our China-sourced supply chain was upended. We had no visibility into true pocket margin across thousands of SKUs. They built us a pricing model by channel, implemented cost tracking we could actually use, and gave us Price-Volume-Mix measurement to verify it was working. We didn't just survive the tariffs—we grew profitability 9%.