About the company

The company is a Nordic industrial service provider with a global reach serving builders, building owners, and facility managers.

  • Company size: Large cap
  • Personnel: >10K

Challenge

The company was about roll-out a new service model as a part of a bigger product launch. There was still uncertainty if the planned pricing model was the right fit for the soon-to-be rolled-out service. It was decided that additional validation was needed before product launch.

It was decided that additional validation was needed before product launch. As qualified and available internal resources were scarce, the company looked instead of a flexible external partner who could offer help with the critical component of the product launch.

Market research and customer interviews had already been done, and hence support was needed to analyse the current model and give recommendations on how the pricing model could be developed further. In addition, financial performance with different price levels was decided to be included in the project scope.

Knowit Insight was selected as a partner among shortlisted consulting companies due to the customer-centric approach with clear scoping of the project, flexibility, and ability to understand the current challenge the company was facing. The project was started quickly and finished on time as planned.

The work done focused on understanding and evaluating the pricing model's key aspects: customer value created, competitive landscape, pricing model, value communication, price levels and pricing policy and implementation.

Evaluating pricing model and building scenarios for financial performance

Our work began by analysing the service packages, key features, and customer benefits by going through all the materials available to us, including technical specifications of the products, to truly understand what the services were all about. A clear understanding of customer value drivers and reference points for service is critical when evaluating pricing models.

Market research with customer analysis was done previously. Due to the project's short timeframe, internal experts closest to the markets were decided to be utilized to gather more information from the customer interface. The company operates with a direct sales force, and hence the selected pricing model must offer a clear way of communicating value and defending price.

A key part of the project was analysing the pricing model in a detailed way by de-constructing the planned model and building different scenarios for various price models with different price metrics. These scenarios were analysed and compared together to be able to deliver and present clear recommendations in a workshop with internal experts. Utilizing a broader knowledge base allows leveraging lessons learned from previous product launches and building broader acceptance towards the chosen path.

Key deliverables

  • Clear recommendations on the service pricing model and pricing metrics per service area
  • Business case and scenario analysis for price level ranges
  • Internally aligned steps on how to move forward
Contact us
Maria Åberg
Head of Knowit Insight in Finland
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