CASE STUDY
Price increase management: driving EBITDA growth in industrial drying and granulation services
Company
HQ
Germany
SIZE
Medium enterprise
INDUSTRIES
Professional Services
VALUE CREATION
Pricing
INVESTOR
Mid-cap PE
What they wanted
As a leading expert in industrial drying and granulation services, there was clear potential for enhancement. We collaborated with the business to optimise the returns on value-added services, seamlessly aligning them with the production of core products.
What we did
At the outset, we conducted a comprehensive assessment to gauge the opportunity, delving into each customer’s potential for upcharging on consumed value-added services.
Simultaneously, we identified untapped potential in the pricing of the core product for a majority of customers. Following this, we orchestrated a strategic, value-based communication programme, ensuring a standardised yet personalised approach for informing each customer about the planned price increases.
Subsequently, we took a hands-on role in guiding the team through the entire process, from communicating the price adjustments to successfully closing deals. Our active support proved particularly instrumental during the negotiation phase with each customer.
What was achieved
From our insightful initial analysis, identifying untapped potential in the core product segment, and our highly effective communication strategy, all customers embraced the proposed price increases. Consequently, we not only met but exceeded our target, delivering an increase in EBITDA of over 20%.
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