Precision Pays: How Targeted Efforts Boosted Sales and Pricing Power
Situation
A manufacturer of high-end aluminum components could not command premium prices and consistently lost business to inexpensive imports.
The challenge
Understanding which of the company’s product and company differentiators affected the company’s pricing power. Understanding if certain market verticals specifically appreciated those differentiators and how these affected willingness to pay.
Findings
Two market verticals were identified: verticals that have a specific appreciation of the company’s services and support, including expert engineering support. Services that drove a higher willingness to pay and that their competitors did not offer.
Results
By focusing marketing and sales efforts on those two market verticals and by developing market and sales messages related to the value of their services, the company was able to grow sales by about 20% at an average of 15% higher prices.
