1. Client Overview

Industry: Industrial fastening systems – screws, bolts, chemical anchors, and fixing systems
Business Units Assessed: Residential, Retail, Commercial, International

Client Context:
ITW Proline is a division of Illinois Tool Works (ITW), supplying fasteners and construction fixings across the trade, retail, and commercial construction sectors. Despite strong brand recognition through lines like Paslode, Buildex, Ramset, and Pryda, the business lacked pricing alignment and strategy integration across segments. Pricing confidence was uneven, margin leakage common, and the value of premium positioning was not always defended or monetised in pricing outcomes.

2. Challenge / Problem

Symptoms Observed:

• Legacy cost-plus pricing and ad hoc discounting practices across all business units
• Minimal documentation of customer value drivers—pricing largely volume-based or cost-derived
• Sales teams lacked training in value-based selling and commercial price defence
• Internal pricing strategy not clearly communicated or understood across departments
• Different pricing structures and pricing authorities between brands created inconsistencies

Strategic Impact:

• Margin compression in commoditised SKUs and failure to monetise premium service, delivery, and brand equity
• Cross-functional misalignment between sales, marketing, and finance, leading to patchy discount governance
• Risk of margin erosion and margin target shortfall against corporate investor expectations

Internal Commentary:
“We’re priced like a premium supplier, but we’re not always able to defend or explain the value. The margin is there, but we’re losing it in the way we quote and approve deals.”

3. Objectives of the Engagement

• Evaluate pricing practices and margin performance across Residential, Retail, Commercial, and International divisions
• Surface internal misalignments in pricing execution, value articulation, and governance
• Build cross-functional understanding of pricing as a strategic tool—not just a number
• Deliver quick wins to improve price setting and execution discipline
• Establish the roadmap to scalable, value-based pricing maturity across all channels

4. Our Approach

Revenue & Margin Strength Finder Surveys:
Custom surveys were issued to sales, finance, and executive stakeholders across each division to benchmark pricing capability against industry best practice.

Diagnostic Scorecards & Canvas Tools:
Capability was assessed across nine pricing domains, identifying gaps in value communication, discount governance, systems logic, and sales process discipline.

Cross-Business Comparison:
Results from each unit were analysed independently, then mapped across the broader ITW Proline network to assess structural consistency.

Executive Workshops & Playbook Drafting:
Engagements concluded with facilitated pricing strategy and capability alignment workshops, followed by the development of pricing playbooks and priority actions.

5. Key Issues Identified

• ITW Proline lacked a centralised pricing strategy. Most business units had no documented pricing logic by segment or channel.
• Customer value was intuitively understood but rarely quantified or used to guide pricing or negotiations.
• Sales teams were not equipped to defend price. Training on margin maths and pricing tactics had not been widely deployed. Discounting was often used as a default.
• Cost-plus pricing remained the dominant logic across regions, resulting in overpricing of commoditised SKUs and underpricing of branded, high-value product ranges.
• Discount approvals and escalation rules were inconsistent. Overrides were common and frequently lacked visibility into true margin impact.
• Reporting on pricing performance was limited, and there was no standardised pricing analytics capability embedded in regular review cycles.
• Senior management supported the need for pricing reform but lacked a shared roadmap or governance model to drive execution across divisions.

6. Key Actions Taken

• A full capability diagnostic was conducted across all four business units to benchmark pricing maturity and prioritise areas for improvement.
• A commercial training program was introduced under the “Pricing University” brand. It included pricing maths, deal profitability, and customer value defence modules tailored for frontline sales and product teams.
• A discount governance framework was designed to standardise pricing authorities and escalation protocols across brands and geographies.
• New value discovery tools were developed—including Customer Value Canvases and quoting guides—to help the business articulate and monetise customer value at the point of sale.
• Strategy and alignment workshops were conducted with executive leaders to establish clear pricing ownership, role definitions, and roadmap initiatives for governance, analytics, and reporting.

7. Results Achieved

• A margin improvement opportunity of $6M–$12M was identified across the four business units through better discount control, value monetisation, and segmentation.
• Override activity was forecast to reduce by 40–60% following implementation of the discount governance model.
• Over 70% of key commercial staff completed training within six weeks of rollout, improving pricing fluency and confidence across all teams.
• The business achieved cross-functional alignment on pricing roles, logic, and rules—creating a platform for ongoing performance improvement.
• Playbooks, pricing policy drafts, and quoting tools were delivered and put into active use across teams to support day-to-day decision-making.

8. Client Feedback

“Pricing Insight helped us step back and see the system, not just the numbers. We now have a clear plan, better tools, and the alignment needed to protect and grow our margins across all channels.”
— VP & General Manager, ITW Proline

9. What This Means for Similar Companies

Multi-channel industrial suppliers often face pricing inconsistency and discount leakage due to legacy systems, channel conflict, and under-trained sales teams. The ITW Proline case shows that even well-respected brands with broad reach can regain control and margin by investing in pricing capability, aligning on strategy, and embedding scalable controls. You don’t need a system overhaul—just a structured, cross-functional commitment to pricing discipline.

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