CASE STUDY
Price increase management: mitigating margin erosion and enhancing revenue in consulting and professional services
Company
HQ
Belgium
SIZE
Small enterprise
INDUSTRIES
Professional Services
VALUE CREATION
Pricing
INVESTOR
Small-cap PE
What they wanted
A distinguished consulting and professional services agency faced challenges with margin erosion due to the continuous rise in the COGS caused by inflation. Despite adjustments to day-rate tables, not all newly established contracts reflected these updated rates, resulting in a lack of uniformity across various business units.
What we did
We supported the agency by conducting thorough initial data analysis, offering deeper insights into projects and clients that could be considered for renegotiation. Subsequently, we engaged in detailed discussions with account managers to grasp the context, devising a customised and optimal approach to enhance prices in a fair and acceptable manner.
What was achieved
We spearheaded the entire price increase initiative from inception to completion, ensuring clarity not only in customer and project segmentation for distinct increases but also by crafting negotiation scripts, email guidelines, and providing process support. Consequently, the ultimate average net increase surpassed initial expectations.
