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Flooring Manufacturer Gains Control of Prices & Profit

At the largest flooring products manufacturer in the U.S., an internal Six-Sigma study of pricing performance revealed that more than 50 percent of sales orders were transacted below the lowest approved prices because sales management accepted nearly all requests for larger discounts from the 300-plus person field sales force. This approach produced wide variations in prices and margins, and was in direct conflict with the newly announced business objective of growing market share by 15 percent while increasing margins by five percent.

This case study tells the story of this manufacturer and how providing relevant, up-to-date, market-aligned price guidance boosted the negotiating confidence of the front-line sales force and allowed them to spend less time pushing spreadsheets back and forth with their managers and more time discussing their product lines and the value to customers.

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