Customer Success Story
EXECUTIVE SUMMARY
Customer
Multi-billion dollar, medical and surgical
supply distributor
Challenge
• Low confidence in pricing methods
• No information on customers’
“Willingness To Pay”
• Slow, time-consuming price quote
process by sales
Solution
PROS Scientific Analytics, Segmentation,
and Pricing Guidance
• Generated segments based on
specific transaction, customer, and
product attributes
• Provided scientifically generated
target, floor, and stretch pricing
guidance
• Enabled fine-tuning of prices while
reducing time to quote
• Collected and analyzed data for
executive reporting
PROS Impact
Generated $10 million increase in gross
profit
Medical
Distribution
Global Medical Distributor
Fine-Tunes Pricing
Decisions to Grow Profits
by $10 million
Lack of Key Pricing Information
Impacts Revenues and Margins
The major pricing objectives of this global medical products
distributor were to increase confidence in pricing methods, gain
further insight into customer demands, and be able to quickly
react to market trends and variability. Revenue and margins had
fallen well below expectations, for sales representatives lacked
accurate and actionable information to quote an appropriate
price. They required access to key data, such as optimized
benchmarks for break-even, floor, and stretch prices, at the time
each quote was being created.
See price differences
between segments
and compare
performance between
peer groups
Customer Success Story
Why PROS
• Complete integrated pricing
solution provides faster time
to value and lower total cost of
ownership
• Real-time integrated science
assures maximum margin and
Because existing processes failed to provide timely and significant
information, sales representatives spent too much time on lowvalue efforts and not enough time on strategic selling. Timeconsuming manual processes, combined with the lack of a
standardized methodology across the sales force, ultimately led to
lost opportunities, less revenue, and lower margins.
PROS Identifies Customer Segments, Delivers
Key Transaction Pricing Information
profit improvement
Key Pricing Objectives:
• Guaranteed project success
delivers demonstrable ROI within
30 days
• Industry-leading experience
•
Keep focus of pricing activity on margin improvement
•
React quickly to market trends, capitalize on seasonal
activity, and respond to time-sensitive opportunities
•
Implement a systematic pricing methodology based on
customer segmentation
•
Achieve better insights into customers’ transactional
behavior and “Willingness To Pay”
•
Collect and analyze data for executive-level reporting on
strategic pricing and profit goals
and expertise ensure long-term
success built on a culture of
partnership
Pricing executives
can monitor and
report on sales force
adoption of corporate
pricing initiatives
Customer Success Story
PROS successfully deployed a systematic pricing solution that
yielded a significant reduction in time to quote and substantial
improvement in margins and profitability across the customer base.
In addition, the PROS solution reduced the time to identify and
react to market changes so that the company could seize timesensitive revenue or volume opportunities. In a highly competitive
industry where margins are slim, this distributor is now able to
make informed pricing decisions and respond quickly to quote
requests that maximize margins and win profitable business.
“PROS generated peer
groups, or segments,
based on specific
transaction, customer, and
product attributes so that
Increased Quote-to-Close-Rates Yield Margin
Gain and $10 Million in Gross Profit
sales representatives could
This medical distribution leader effectively used PROS to maximize
margin and increase quote-to-close rates by targeting an optimal
price option for each deal quoted by the sales team, achieving a
margin increase of 140 basis points. Information gained through
segmentation and pricing guidance has led to improved pricing,
helping the distributor realize a $10 million increase in gross profit.
should differ from segment
PROS Solution Advantages
 Generated peer groups, or segments, based on
specific transaction, customer, and product attributes
 Leveraged segmentation results to build target, floor,
and stretch pricing guidance
 Increased revenues by targeting low performing
customers in each peer group
 Enabled sales reps to fine-tune pricing alignment with
company’s strategies
 Significantly reduced the time to quote prices
clearly see how prices
to segment, even for the
same product.”
“PROS pricing guidance
helped increase revenues
by targeting low performing
customers in each peer
group, while at the same
time ensuring that high
performers continued to
perform well.”
Customer Success Story
For more information:
PROS delivers hundreds of millions of dollars in sustained
bottom-line profitability to business-to-business companies in the
distribution, manufacturing, and services industries. Customers
begin receiving value from PROS in less than 30 days, and PROS
solutions are fully deployed to the enterprise in as little as 6
months. Visit our website at www.prospricing.com [NYSE: PRO]
PROS Pricing Solution Suite
PROS Pricing Solution Suite™ consists
of three modules that work together to
get you to Pricing Excellence
Scientific Analytics
Identify segment-specific pricing, find
opportunities for margin improvement,
and forecast and monitor your progress
proactively
Price Optimizer
Create the right price for each customer
and product by setting science-based
optimized pricing strategies and
managing price lists automatically
Monitor your performance and
adherence to policy
Deal Optimizer
Quote the right price for each deal by
using guidance, market insights, and
integrated approval workflows
Medical
Distribution
©2011 PROS Holdings, Inc. All rights reserved.