1. Client Overview

• Industry: Medical Devices and Healthcare Consumables Manufacturing
• Business Size: $250M+ revenue across Australia, serving public and private healthcare providers
• Location: Headquartered in Sydney with national distribution and manufacturing capability
• Client Context:
  Multigate operates in a highly commoditised tender-driven environment. Pricing was driven more by habit than strategy, with heavy reliance on cost-plus methods and weak alignment between sales, costing, and product teams. Margin pressure was growing despite significant investment in product quality and supply chain capability.

2. Challenge / Problem

• Symptoms Observed:
  
  • Widespread use of cost-plus pricing without alignment to value delivered
  • Reactive and inconsistent pricing decisions across product categories
  • No structured process for margin improvement, override control or list price strategy
  • Product value often given away without pricing recognition
• Strategic Impact:
  
  • Missed margin on custom procedure packs and high-complexity SKUs
  • Inability to track competitor pricing or quote with confidence
  • Weak pricing culture and lack of data-driven decision-making
• Internal Executive Commentary:
  “Our products are high quality, but we’re not capturing that value in our pricing. We default to price matching because we don’t have the tools or confidence to defend our position.”

3. Objectives of the Engagement

• Identify specific opportunities for immediate EBIT lift through price reset
• Strengthen pricing governance and delegated authority structures
• Shift away from reactive pricing to data-informed value pricing
• Improve internal pricing confidence and alignment between functions
• Equip sales and commercial teams with the tools and training to support better pricing execution

4. Our Approach

• Phase 1: Diagnostic Assessment
  
  • Surveyed pricing capability across 9 pricing domains and 55 indicators
  • Conducted structured interviews with executives, sales, costing and operations
  • Analysed systemic issues in price architecture, override behaviour, and value leakage
• Phase 2: Quick Wins Strategy Workshop
  
  • Facilitated alignment on pricing ambition, roles, and EBIT targets
  • Developed strategic roadmap to address list price logic, tenders, and pack margin
• Phase 3: Execution Enablement
  
  • Delivered pricing playbooks, override tracking tools, and draft margin dashboards
  • Built tiered delegated pricing authority model to manage large tenders and routine quoting
  • Designed value communication framework for differentiated SKUs and services

5. Key Actions Taken

6. Results Achieved (Within 10–12 Weeks)

7. Client Feedback

“The diagnostic made it clear that we were undervaluing what makes us different. The program helped us take control of pricing—without needing to overhaul our entire product line.”
— Executive Director, Multigate

8. What This Means for Similar Companies

In tender-heavy industries with complex SKUs and high operational costs, cost-plus pricing creates margin blind spots. The Multigate case shows that a structured diagnostic, backed by leadership alignment and data tools, can identify and fix pricing leakage—fast.

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