Aftermarket Filtration Supplier

Client Need:

An aftermarket filtration supplier with global operations wanted to optimize its approach to pricing. The business turned to Ducker Carlisle for strategy design and implementation. The solution was rolled out in two phases – first in North America, then into Europe, the Middle East, and Africa (EMEA).

The supplier had been using cost-plus and manual pricing. They wanted to shift to a combination of value-based and market-based pricing. The company also needed a pricing software solution that would allow them to streamline the annual repricing process and plan for scalability across global business units.

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Ducker Solution:

The Ducker Carlisle team launched qualitative and quantitative research to identify key value drivers. These activities included: customer interviews, a willingness-to-pay study, and the gathering of competitive pricing data. Ducker Carlisle also developed a comprehensive segmentation matrix to classify products based on competition levels or value factors. This matrix reduced the client’s pricing segments by 70%, thus expediting the pricing review process.

Given the variability in competitiveness for the aftermarket filtration market, the Ducker Carlisle team layered in market-based information where applicable and leveraged attribute (physical characteristics, product specifications, designs, etc.) data to realize the value of the remaining products.The research, segmentation matrix, and pricing review strategies were deployed into a software pricing solution, which standardizes the client’s pricing and review process in preparation for global rollout.

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Benefits/Deliverables:

• 7.9% 90%+ incremental revenue gain, with the impact being realized in 6 months
• Condensed 100+ segments into 30 using rules-based segmentation
• Streamlined internal price review process and enabled scalability across additional business units