Situation
- $100M healthcare B2B and B2C equipment and supplies e-commerce platform serving small businesses to large hospital networks
- Organization was experiencing deflationary margins in B2B platform and under-performing B2C platform bogged down by poor user-experience due to breadth of product offering
- Client lacked the ability to “intelligently” raise prices and evaluate impact of those decisions and rationalization framework to reduce the breadth of the product offering
- SLKone was asked to develop a replicable pricing model and rationalization framework
Bespoke Solutions
- Executed working sessions with key stakeholders to determine key pricing decision drivers
- Developed a pricing increase process and product “Scorecard” to algorithmically apply price increases based on leadership’s gross margin goals
- Worked with project managers and SEO marketing teams to develop rationalization framework and website design
- Delivered rationalization recommendation scenarios
Leading With Results
- Improved gross margin by ~0.7%; up ~3.0% in some platforms with limited elasticity impact
- Enabled rationalization of ~52% of product portfolio accounting for 1.6% and 1.5% of revenue and gross margin, respectively
- Improved alignment on pricing and product strategy between product managers, sales, and executive leadership team