Auto Parts Manufacturer Optimizes Market Pricing to Generate $5 Million in 28 Days
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Auto Parts Manufacturer Optimizes Market Pricing to Generate $5 Million in 28 Days

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Auto aftermarket parts leader needed to capture time-sensitive pricing opportunities. See how PROS helped them to do this.

Auto aftermarket parts leader needed to capture time-sensitive pricing opportunities. See how PROS helped them to do this.

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Auto Parts Manufacturer Optimizes Market Pricing to Generate $5 Million in 28 Days Auto Parts Manufacturer Optimizes Market Pricing to Generate $5 Million in 28 Days Document Transcript

  • Customer Success Study: Auto Parts Manufacturer 1 Auto Parts Manufacturer Optimizes Market Pricing to Generate $5 Million in 28 Days Auto Parts Manufacturer Customer Success Study Unlock Your Data • Unleash Your Sales Auto aftermarket parts leader needed to capture time-sensitive pricing opportunities
  • Customer Success Study: Auto Parts Manufacturer 2 Executive SUMMARY Multi-billion dollar, auto aftermarket parts manufacturer and distributor Generated $5 million in pricing improvements in only 28 days Company relied on cost-plus pricing model Little visibility to gauge market effect on pricing decisions PROS Pricing Solution Suite Analyzed and adjusted prices in line with competitive prices Drove incremental revenues Provided visibility into “Willingness To Pay” of each customer Established market-based pricing system, integrated with Microsoft environment Customer CHALLENGE SOLUTION IMPACT
  • Customer Success Study: Auto Parts Manufacturer 3 Like many organizations, this automotive manufacturer and distributor relied on a cost-plus pricing model focused on a corporate-mandated target margin for pricing all its automotive aftermarket parts. In many cases, however, parts pricing was reduced when customers complained that costs were too high. When price reductions were made, the prices of other parts were never adjusted to help offset the margin loss. At the same time, the manufacturer had no visibility into competitor pricing and how the market would react to specific pricing decisions. This lack of visibility into competitor pricing data led to delayed notification of changes in the market conditions and missed pricing opportunities. By not pricing correctly and reacting quickly to the competition, the manufacturer was losing tens of millions of dollars in revenue, volume, and margin. Auto Aftermarket Parts Leader Needed to Capture Time-Sensitive Pricing Opportunities Why PROS • Complete integrated pricing solution provides faster time to value and lower total cost of ownership • Real-time integrated science assures maximum margin and profit improvement • Guaranteed project success delivers demonstrable ROI within 30 days • Industry-leading experience and expertise ensure long-term success built on a culture of partnership
  • Customer Success Study: Auto Parts Manufacturer 4 PROS Establishes Targeted, Market-based Pricing Using Science-based Recommendations This manufacturer selected PROS to optimize pricing through science-based segmentation, pricing guidance, and PROS Scientific Analytics. PROS was the only vendor who could meet their implementation timeline. This ability to deliver in a timely manner, combined with the lowest total cost of ownership, made PROS best suited to fulfill the manufacturer’s requirements for a clearly defined payback period and overall ROI. “PROS was the only vendor that could meet our implementation timeline combined with the lowest total cost- of-ownership requirements, while also meeting a defined payback period and our overall ROI objective.” Competitor Opportunity Report shows which parts offer the greatest opportunity for price changes and increases
  • Customer Success Study: Auto Parts Manufacturer 5 “By identifying targets for margin opportunity with PROS, the pricing team can quickly adjust prices for individual parts and bring them in line with both optimized and competitive prices.” PROS worked with the manufacturer’s IT team to leverage existing transaction data and then added new competitive data through PROS Scientific Analytics, configured specifically for the automotive parts industry. These combined data sets enabled pricing managers to immediately analyze prices relative to those of their competition and rank margin opportunities by part number. By identifying targets for margin opportunity, the pricing team could then quickly adjust prices for individual parts and bring them in line with both optimized and competitive prices.
  • Customer Success Study: Auto Parts Manufacturer 6 In addition, the PROS solution enabled this company to gain a better understanding of the details behind pricing for each part number, so that product line managers could develop strategies for market-leading pricing. Prices that were incorrectly set below those of the competition were found and corrected. The company also took advantage of PROS/Microsoft® out-of-the-box integration capabilities to export pricing files using Excel® . Rapid Time to Implementation Delivers Millions in Pricing Improvements in under a Month The PROS solution identified five to six million dollars in pricing improvements in the first 28 days of implementation. Today, product line managers, who are responsible for pricing tens of thousands of parts, can effectively use PROS to capture time-sensitive profit opportunities and successfully implement competitive pricing for each and every part. Track total sales of different parts against dealer unit cost and unit price
  • Customer Success Study: Auto Parts Manufacturer 7 PROS Pricing Solution Suite PROS Pricing Solution Suite™ consists of four modules that work together to get you to Pricing Excellence Scientific Analytics Identify segment-specific pricing, find opportunities for margin improvement, and forecast and monitor your progress proactively Price Optimizer Create the right price for each customer and product by setting science-based optimized pricing strategies and managing price lists automatically Monitor your performance and adherence to policy Deal Optimizer Quote the right price for each deal by using guidance, market insights, and integrated approval workflows REBATE Optimizer Centralize and manage your rebate programs, and measure the effectiveness on deal profitability
  • Customer Success Study: Auto Parts Manufacturer 8 PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply 27 years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers big data solutions to optimize sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has implemented more than 500 solutions in more than 55 countries. The PROS team comprises more than 650 professionals around the world. To learn more, visit www.pros.com. About PROS PROS.com Copyright © 2013, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error -free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or tness for a particular purpose. We specically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps customers outperform in their markets by using big data to sell more effectively. We apply 27 years of data science experience to unlock buying patterns and preferences within transaction data to reveal which opportunities are most likely to close, which offers are most likely to sell and which prices are most likely to win. PROS offers big data solutions to optimize sales, pricing, quoting, rebates and revenue management across more than 30 industries. PROS has implemented more than 600 solutions in more than 55 countries. The PROS team comprises more than 700 professionals around the world. To learn more, visit www.pros.com. About PROS PROS.com Copyright © 2013, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error -free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or tness for a particular purpose. We specically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission.