Aerospace & Advanced Manufacturing
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MERU CASE STUDY
Identified 3-4% of margin improvement for a leading industrial equipment manufacturer
COMPANY OVERVIEW
- Publicly-listed leading manufacturer of technology applications and highly engineered equipment for food, beverage, and packaging industries
- Annual revenue of approximately $2 billion
- The Company acquired multiple family-owned businesses over time, none of which were fully integrated. These “legacy” businesses continued to operate on a “this is how it’s always been done” mindset
- Company’s organic growth had flat-lined. They were interested in driving revenue by deploying a consistent pricing philosophy across different businesses
OUR APPROACH
- Deployed three different pricing approaches tailored to the different types of businesses
- Original equipment. Updated cost estimation sheets to include cost floors and implemented change order pricing
- Aftermarket services. Accelerated a new revenue stream on how to manage current install base by promoting preventive maintenance services
- Transaction pricing. Harmonized pricing for spare parts based on sales velocity, engineering complexity, and perceived value to the customer
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OUR IMPACT
![case-study-icon1 case-study-icon1](https://wearemeru.com/wp-content/uploads/2022/08/case-study-icon1.png)
Identified 3-4% EBITDA margin improvement opportunities through pricing.
![case-study-icon2 case-study-icon2](https://wearemeru.com/wp-content/uploads/2022/08/case-study-icon2.png)
Built robust pricing tools tailored to each business to track compliance with the new pricing guidelines.
![case-study-icon3 case-study-icon3](https://wearemeru.com/wp-content/uploads/2022/08/case-study-icon3.png)
Designed BU-specific dashboards to track revenue and EBITDA impact due to pricing-related levers.