1. Client Overview
- Industry: Kitchen and Bathroom Fixtures – sinks, mixers, tapware, accessories
- Business Size: National manufacturer and distributor supplying B2B and retail partners across Australia
- Client Context:
Oliveri is a respected player in the premium kitchen and bathroom fittings market. Despite a well-established brand, internal pricing discipline had not evolved to match the complexity of its product range, channel mix, and customer expectations. As a result, margin erosion, pricing inconsistency, and internal misalignment were limiting EBIT performance and undermining Oliveri’s ability to defend value.
2. Challenge / Problem
- Symptoms Observed:
- Pricing decisions driven by historical cost-plus logic with no link to customer value or cost-to-serve
- Significant price inconsistency between similar customers and channels
- Sales teams lacked technical pricing understanding and defaulted to discounts
- No standard process for negotiating or defending value-added services and product quality
- Lack of pricing visibility and analytics across SKUs, regions, and customer segments
- Strategic Impact:
- Scope creep and margin dilution in key trade and retail accounts
- Flat price increases failing to address structural pricing issues or channel differences
- Internal frustration around pricing accountability—everyone involved, but no one truly owning the outcome
- Internal Commentary:
“We knew we had strong products, but we couldn’t explain our price. Every conversation with a customer turned into a discount conversation, not a value conversation.”
3. Objectives of the Engagement
- Conduct a pricing diagnostic to identify margin leakage, organisational capability gaps, and governance issues
- Establish a shared understanding of pricing strategy and value communication across commercial functions
- Build capability in pricing maths, negotiation, and price defence across the commercial team
- Deliver a plan of short-term pricing improvements and longer-term strategic pricing transformation
4. Our Approach
- Phase 1: Capability Diagnostic
- Assessed pricing maturity across the 9 dimensions of the Pricing Insight canvas: Value, People, Structures
- Identified an average capability score of 67%, with weaknesses in pricing strategy, analytics, and pricing method execution
- Technical pricing quiz showed a 45% average score—confirming urgent need for pricing education
- Phase 2: Executive Alignment and Workshop Facilitation
- Conducted strategic pricing workshops with cross-functional teams to surface key risks and barriers
- Visualised margin opportunities and capability gaps using the Pricing Canvas and Revenue Strength Finder
- Agreed on immediate quick wins and a roadmap for structural improvements in systems and controls
- Phase 3: Enablement and Training
- Delivered Pricing University training modules for sales, product, and finance staff
- Developed playbooks and margin simulation tools to support pricing decisions at the front line
- Introduced pricing guardrails and decision frameworks to guide commercial conversations
5. Key Issues Identified
Pricing Strategy
Dominated by legacy cost-plus methods; lacked segmentation or value orientation
Customer Value
No formal identification of value drivers or communication of value delivered
Sales & Negotiation
Low pricing confidence; sales defaulted to discounting to close deals
Discounting Controls
Override approval rules unclear; no structured pricing authority model
Management Alignment
Leadership support for pricing change was strong—but not yet backed by common process or tools
Pricing Analytics
No ability to evaluate margin by SKU, product line, or customer segment
System Constraints
Pricing logic and discount history buried in systems, hard to audit or analyse
6. Key Actions Taken
Technical Skills Development
Delivered pricing maths and deal impact training to lift commercial confidence
Margin Simulation Tool
Built calculator to visualise margin effect of discounts, freight, and rebates
Override Governance
Developed escalation structure for discount approval based on margin thresholds
Value-Based Pricing Playbook
Defined customer value drivers and introduced playbooks for quoting and negotiation
Strategic Pricing Roadmap
Created 12-month plan to align systems, analytics, and roles to support sustained margin improvement
7. Results Achieved (Within 8–12 Weeks)
EBIT Opportunity Identified
$2.5M–$4.5M EBIT uplift through improved price execution and governance
Override Frequency Projected Drop
Forecasted 50% reduction in discretionary discounting
Pricing Confidence Improvement
Technical quiz score improvement from 45% to >70% post-training
Internal Alignment Achieved
Sales, marketing, and finance now aligned on pricing logic and decision flow
Execution of Quick Wins
Activated pricing controls, freight recovery initiatives, and quote SOPs
8. Client Feedback
“Pricing Insight helped us make sense of what pricing should look like in our business. We stopped pricing like a manufacturer and started pricing like a market leader.”
— National Commercial Manager, Oliveri Solutions
9. What This Means for Similar Companies
For manufacturers operating in multi-channel trade and retail markets, the challenges of inconsistent pricing, unstructured discounts, and flat increases are all too familiar. Oliveri’s case proves that you don’t need a system rebuild to recover margin—you need a clear strategy, aligned teams, and the confidence to defend your value.
10. Contact Us
To discover how your company can recover hidden margin, build pricing confidence, and structure commercial growth, contact:
Ron Wood
Managing Director, Pricing Insight
ronwood@pricinginsight.com.au |
www.pricinginsight.com.au