EBITDA Improvement Program
Put better pricing into market—with a clear earnings case and controlled implementation. Powered by Project Blackbird, the program develops targeted prices by product and customer, reviews account and contract implications, and supports rollout through your existing systems. Timing and financial measures are agreed for your scope; implementation milestones are distinguished from realised earnings.
Is your pricing strategy a competitive advantage or a hidden weakness?
Find where margin is being lost, and how to take back control.
Who is Project Blackbird for?
Blackbird suits businesses where thousands of prices are set by formula or by discretion:
- manufacturers, distributors and wholesalers with large SKU ranges, typically A$100m or more in revenue;
- customer-specific prices, contract prices or tender pricing;
- sales teams or dealers that can agree discounts or override list prices, including capital equipment businesses with a smaller range but high discount discretion;
- logistics and service businesses pricing thousands of accounts from rate cards;
- price files that have not been reviewed against customer value for some time.
What problem does it solve?
Most large price lists are built on cost-plus formulas and adjusted by hand. Input costs move faster than price files. Discounts differ between branches, business units and sales reps, and overrides become routine in tenders. Each decision is small; together they decide the margin.
The usual response is a flat price increase across the range. It recovers some margin in the short term, but it treats a customer who values the product highly in the same way as one who is ready to switch. Key accounts push back, volume falls, and the gain is given back in discounts.
Almost a third of sales are priced well below the usual price
Share of net sales by price paid, against the typical (median) price of the same product. Every customer and product line in one year of sales.
A small buyer pays a third less than a buyer 70 times larger
One product. Each circle is a customer, placed by units bought and the net price paid after rebates.
Blackbird replaces both habits with a price for each SKU and customer that reflects what that customer values and how much pricing power you hold with them.
What does it mean for EBIT?
When you raise a price, the extra revenue costs nothing more to produce. There is no extra stock, freight or overhead, so almost every extra dollar goes straight to EBIT. That is why a small change in price makes a large difference to profit.
Take a business with A$100m of revenue that makes A$6m of EBIT, a 6% margin. If it sells the same volume:
- Prices 2% higher on average: an extra A$2m, so EBIT rises from A$6m to A$8m, an increase of 33%.
- Prices 5% higher on average: an extra A$5m, so EBIT rises from A$6m to A$11m, an increase of 83%.
Two points of price adds a third to EBIT
Illustrative business: revenue A$100m, EBIT A$6m (a 6% margin), with no change in volume.
Blackbird does not apply one figure across the range. It raises price where customer value and pricing power support it, holds it where they do not, and lowers it where a price is costing you volume. The EBIT effect is shown line by line before any price changes, so the board approves a number, not an estimate.
Where the margin comes from: the largest accounts, then the long tail
Gross margin uplift from one optimised price file, by customer size band.
How does Blackbird work?
Blackbird combines two measures, both built from your own transaction and customer data:
- Customer pricing power. A score for each customer that reflects how firmly you can price to them, drawn from their buying behaviour and account history.
- SKU price position. The full distribution of prices actually paid for each product across your customer base, showing where each customer sits against the market price for that item.
From these, the engine produces the optimised price file: a recommended price for every SKU and customer at three levels of risk, low, mid and higher, with the EBIT effect of each. Recommendations roll up to price groups or contracts, so the sales team receives a clear price position rather than thousands of individual changes. Every change is modelled before it is made, tested against your sales team's judgement in the pilot, and passed through approval rules agreed with your executive team.
How much pricing power do you hold with each customer?
Number of customers by pricing power score. Each customer is scored on buying behaviour and account history, then ranked against similar customers.
One product, 320 customers: the price file pulls prices into a defensible range
Price per unit against units bought, for every customer of one product, before and after optimisation. Dashed line: typical price. Shaded: the range paid by the middle 90% of customers.
Your data stays under your control throughout.
What do you receive?
An optimised price file by SKU and customer. For every line, it gives the current price, the recommended price at three risk levels and the EBIT effect of each, and it rolls up to price groups and contracts. It is formatted to load into your ERP, CRM and quoting systems.
What the optimised price file looks like
Every line shows the current price, three recommended prices and the annual EBIT effect. Your executive team picks the risk level; the sales team sees one price.
| SKU | Customer | Pricing power | Units a year | Current price | Low risk | Mid risk | Higher risk | EBIT effect at mid risk |
|---|---|---|---|---|---|---|---|---|
| SKU 40112 | Customer 0217 · national | Harvest | 12,400 | A$18.40 | A$18.95 | A$19.30 | A$19.70 | +A$11,160 |
| SKU 40112 | Customer 1180 · regional | Protect | 3,100 | A$16.90 | A$17.40 | A$17.75 | A$18.10 | +A$2,635 |
| SKU 40112 | Customer 3342 · trade | Risk | 2,800 | A$17.60 | A$17.60 | A$17.60 | A$17.60 | A$0 · held |
| SKU 52870 | Customer 0217 · national | Harvest | 41,000 | A$6.15 | A$6.35 | A$6.50 | A$6.62 | +A$14,350 |
| SKU 52870 | Customer 2051 · regional | Monitor | 6,500 | A$7.40 | A$7.25 | A$7.10 | A$7.10 | −A$1,950 |
| SKU 61004 | Customer 0954 · trade | Protect | 260 | A$112.00 | A$115.40 | A$118.20 | A$120.50 | +A$1,612 |
| Sample of six lines. A full file carries every SKU and customer, rolled up to price groups and contracts. | +A$27,807 | |||||||
With it, you receive:
- a board-ready summary of the margin and EBIT gain, by business unit, customer segment and product group;
- recommended discount bands and approval rules for your executive team to agree;
- support for your team while the file is loaded, and training for sales and pricing staff;
- a performance report against the agreed baseline after go-live.
Then, under a service contract, Pricing Insight provides ongoing support and an updated price file for your next price increase, recalculated on your latest sales data so each increase is targeted rather than flat. You own every price file delivered.
How is it implemented?
Blackbird runs in five stages. The first optimised price file is usually in market through a pilot within 8–12 weeks. Full deployment across a large range then takes 6–12 months, in waves, so each wave is tested before the next.
- Diagnostic analysis. Review of current price structures, SKU- and customer-level pricing, and discount frameworks. The margin opportunity is sized in A$ and basis points.
- Price architecture. Value-based price tiers, discount bands and guardrails are set for each SKU and customer segment.
- Pilot. The new prices run in a selected range or division and are tested against sales team judgement. Customer responses are monitored and the model refined.
- Full deployment. The full price file is loaded into your ERP, CRM and quoting systems in waves, by your team with our support. Sales and pricing teams are trained to apply the new structure.
- Margin Expansion Accelerator. Under a service contract: further opportunities such as under-priced long-tail SKUs, performance reviews against the baseline, and an updated price file for each price increase.
Retail price optimisation in practice: Flannerys
For Flannerys, Project Blackbird combined customer purchasing analysis, competitor benchmarking and promotional review with staged product-level price optimisation. The work progressed from a detailed diagnostic to a harmonised price file ready for review and upload. Read the Flannerys retail pricing case study for the approach and deliverables.
What results has Blackbird delivered?
Three engagements. Each result was realised, not forecast.
Bunzl: 800bps of gross margin on targeted SKUs, across an 18,000-SKU range
Situation. A global distributor serving healthcare, cleaning and hygiene, safety, food processing and packaging. Topline growth was strong, but margins were under pressure from cost-plus pricing, outdated price files, uneven discounting between business units and frequent overrides in tenders.
What we did. Reviewed 12 months of transaction data and identified A$5.7m–6.2m of recoverable EBIT across four business units. Built SKU- and segment-level price ladders, discount guardrails and customer-specific value scoring. Piloted in the healthcare and packaging divisions, testing the engine's recommendations against sales team judgement, then deployed across 18,000 SKUs with approval thresholds, dashboards and pricing logic in SAP and Salesforce. Trained more than 300 frontline staff.
Result. Gross margin on targeted SKUs rose 800bps, worth A$5.7m EBIT, realised within 6–12 months. 98.3% of customers were retained through the transition. Manual overrides fell 35%, and 87% of sales staff reported more confidence quoting. Payback took 10 weeks.
"Project Blackbird gave us visibility and control we'd never had before. It wasn't just about price increases. It was about pricing intelligently. We saw results in weeks, not years." Managing Director, Bunzl Asia Pacific
Staples: A$6.8m EBITDA on A$80m of addressable revenue
Situation. Then trading as Corporate Express, a listed office supplies business of about A$1b, selling 25,000 SKUs to more than 20,000 customers at a 27% gross margin and 6% EBIT margin. Revenue rose 5% while profit fell 3%, the first such result in its history. Newer sales staff were offering discounts of 5–15%, up to two to three times the EBIT margin.
What we did. A diagnostic of more than 5,000 SKUs found more than A$1.5m of gross margin in quick wins, including lines that were under-priced because their costs were wrong in the system. A customised pricing algorithm then set prices across more than 5,000 items in about eight weeks. A dedicated pricing team was recruited and trained to hold the gains.
Result. A$6.8m EBITDA realised within 12 months on A$80m of addressable revenue. A further 2,000 items were optimised later for an additional A$1m of margin.
Hyster-Yale Asia Pacific: from a A$100k EBIT loss to a A$3m gain
Situation. The Asia Pacific arm of a Fortune 500 forklift maker, turning over about A$100m a year on about 2,500 forklifts and losing about A$100k at EBIT. Sales reps could discount at will, and some forklifts were sold below cost. The range was small; the problem was discount discretion and not knowing where pricing power sat.
What we did. Analysed every unit sale by model, dealer and region, and found strong pricing power in the 5–7 tonne forklifts used in high-risk industries such as timber and steel. Routed every forklift deal through a single pricing desk. Limited discounts where pricing power was strong and allowed them where they bought volume and a service base for dealers. Built profitability models for accessories and attachments, replaced hard-copy price lists with an electronic price list and quote tool for dealers, and restricted discounts and cost visibility on aftermarket parts.
Result. EBIT moved from a A$100k loss to a A$3m gain within 12 months. Aftermarket margins expanded without loss of volume.
Read the Hyster-Yale case study →
Blackbird's engine was also built for Toll Group to price more than 13,000 customer accounts across three business units. New approval workflows cut bottom-margin deals by more than half, and a year-one EBIT uplift of A$8.4m was modelled.
Read the Toll Group case study →
Will customers leave when prices change?
The risk is managed in four ways. Prices change where customer value and pricing power support it, not across the board. Every change is modelled before it goes live. New prices run in a pilot before full deployment. And customer communication is planned with the sales team before any price moves. At Bunzl, 98.3% of customers were retained through the transition. At Hyster-Yale, aftermarket margins rose without loss of volume.
What does Blackbird need from your business?
- At least 12 months of transaction-level sales data and customer account data from your ERP.
- A nominated project lead, and access to the people who maintain your ERP, price files and quoting tools.
- Executive sponsorship to agree the approval rules and risk level for price changes.
Frequently asked questions
Return and payback
What return can we expect?
Pricing Insight clients typically realise 200–900bps of margin uplift within 12 months of go-live, or A$2m–9m in additional EBIT per A$100m of revenue optimised. The diagnostic stage sizes your own opportunity in A$ before you commit to the rest of the program.
How quickly will it pay back?
Bunzl reached payback in 10 weeks. The first price file usually goes live through a pilot within 8–12 weeks, and the EBIT effect starts as orders are invoiced at the new prices. Bunzl and Staples realised their results within 12 months.
How is the gain measured, and how do we know it came from pricing?
A baseline is agreed with your CFO before any price changes. The gain is measured as price realisation on the same SKUs and customers against that baseline, separated from changes in volume, mix and cost, and reported regularly to the executive team.
What does it cost, and how is the fee set?
Fees depend on the size of your range and the scope of the program, and are set out in a written proposal before you commit. The service contract for ongoing support and price updates is priced separately.
What return does pricing work deliver overall?
Across more than 160 clients, pricing work has typically returned 5:1 or better.
Risk
Will customers leave when prices change?
Prices move only where customer value and pricing power support it, every change is modelled first, and new prices run in a pilot before full deployment. At Bunzl, 98.3% of customers were retained through the transition.
What about key accounts and contracts?
Contract prices change only when the contract allows. Key accounts get a planned conversation led by the account manager, prepared with the sales team before any price moves.
Will the sales team accept the new prices?
The pilot tests the recommended prices against your sales team's judgement before rollout, and staff are trained to apply them. At Bunzl, manual overrides fell 35% and 87% of sales staff reported more confidence quoting.
What if competitors respond?
Because prices rise only where your pricing power is strong, rather than across the board, competitors have less to target. Customer and competitor responses are monitored during the pilot, and the price file is adjusted before full deployment.
Is our data secure?
Your data stays under your control throughout the program and is used only for your project.
Does Blackbird replace our pricing team?
No. It gives your team a recommended price and its EBIT effect for every SKU and customer. Your people approve and manage the prices, under rules your executives set.
Delivery
What exactly do we receive?
An optimised price file by SKU and customer, with a recommended price at three risk levels and the EBIT effect of each, ready to load into your ERP and quoting systems. It comes with a board-ready summary, recommended approval rules, support with loading, and training.
Is Blackbird software or a consulting service?
A service. Pricing Insight runs the analysis and delivers the price file. It loads into the ERP, CRM and quoting systems you already use, so there is no new software to buy, install or license.
How is it different from licensed pricing software?
Licensed pricing software is a platform you buy, configure and run yourself. Blackbird delivers the answer, an optimised price file, and the support to put it in market.
How much of our people's time does it need?
A project lead, access to the people who maintain your ERP and price files, and executive time to agree the approval rules and the level of risk for price changes.
Our data is messy. Can we still start?
Yes. Checking and cleaning the data is part of the diagnostic stage, and errors in the data are often part of the opportunity. At Staples, some early gains came from lines that were under-priced because their costs were wrong in the system.
Will it disrupt our systems or operations?
No new system is introduced. The price file loads into the systems you already use, first for a pilot range or division and then in waves, so each step is tested before the next.
After the project
What happens after the project?
You keep the price file and the approval rules. Under a service contract, Pricing Insight provides ongoing support, performance reviews against the baseline, and an updated price file for your next price increase.
How should we handle our next price increase?
Not as a flat percentage. Under the service contract, the price file is recalculated on your latest sales data, so the increase is set by SKU and customer according to value and pricing power, and the EBIT effect is known before it goes out.
How often should the price file be refreshed?
At each price increase, and whenever input costs or competitor prices move enough to change your margins.
Where should we start if we are unsure?
The 9PE Diagnostic takes 8–12 weeks and reviews all nine elements of pricing capability, not just price levels. It sizes the opportunity and shows whether Blackbird is the right next step.
How many of your prices were last set against what customers value?
Tell us about your business, your range and how prices are set today. We will tell you plainly whether Blackbird is the right step, or whether the 9PE Diagnostic should come first.
Request a Blackbird conversation → Start with the 9PE Diagnostic →
About Pricing Insight
Pricing Insight is a Sydney-based pricing strategy consultancy, founded in 2007. It works with manufacturers, distributors, retailers and service businesses in Australia and New Zealand on pricing strategy, price structure and pricing operations. It has worked with more than 160 clients. Its methods include the 9PE pricing capability diagnostic, the Blackbird price optimisation engine and a 16-technique margin methodology. Pricing University, its education arm, has trained more than 5,000 executives.
Pricing Insight was founded by Ron Wood, who has 30 years in pricing, including pricing and commercial manager roles in FMCG, building materials and capital equipment. He was the first Australian to write a dedicated course on value-based pricing. Clients include Bunzl, Staples, Laminex, Tradelink, InfraBuild, Arnott's and Toll Group. Pricing Insight is based at Level 26, 1 Bligh Street, Sydney, and can be contacted on +61 410 534 099 or at info@pricinginsight.com.au.
Let’s work together
Whether you're ready to optimise your pricing or want to explore what's possible, we'd love to hear from you.