Aerospace & Advanced Manufacturing
MERU CASE STUDY
Identified 3-4% of margin improvement for a leading industrial equipment manufacturer
- 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
- 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
Identified 3-4% EBITDA margin improvement opportunities through pricing.
Built robust pricing tools tailored to each business to track compliance with the new pricing guidelines.
Designed BU-specific dashboards to track revenue and EBITDA impact due to pricing-related levers.