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.

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.”

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

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

Key Actions Taken

1. Customer Value Driver Mapping
   Identified where value was being created but not priced (e.g. infection control, customisation)
2. Override Control Model
   Introduced structured thresholds and audit tools for tender and pack pricing
3. Quote SOPs & Playbooks
   Created consistent quoting guides with margin guardrails and authority flow
4. Pricing Dashboard Blueprint
   Enabled tracking of override frequency, margin variances, and quoting accuracy
5. Sales Enablement & Training
   Built capability in value selling and introduced pricing tactics guides for BDMs

Results Achieved (Within 10–12 Weeks)

1. EBIT Margin Expansion Opportunity
   $4.2M–$6.8M identified across high-volume SKUs and pack pricing
2. Override Risk Reduction
   Model implemented to govern tender discounting and quote integrity
3. Capability Uplift
   Pricing maturity score improved from 56% baseline with defined 12-month roadmap
4. Costing Alignment
   Introduced value-based pricing criteria into costing reviews
5. Sales Confidence
   Frontline teams equipped with value selling toolkit and pricing logic guides

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

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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