Pros
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
1PB
Auto PArts MAnufActurer
oPtiMizes MArket Pricing
to generAte $5 Million in 28 DAys
Auto PArts MAnufActurer
customer success study
unlock your Data • unleash your sales
Auto aftermarket parts leader
needed to capture time-sensitive
pricing opportunities
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
32
executive suMMAry
Multi-billion dollar, auto aftermarket parts manufacturer and distributor
Generated $5 million in pricing improvements in only 28 days
Company relied on cost-plus pricing model
Little visibility to gauge market effect on pricing decisions
PROS Pricing Solution Suite
Analyzed and adjusted prices in line with competitive prices
Drove incremental revenues
Provided visibility into “Willingness To Pay” of each customer
Established market-based pricing system, integrated with Microsoft environment
CuSTOMER
CHALLENGE
SOLuTION
IMPACT
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
32
Like many organizations, this automotive manufacturer and
distributor relied on a cost-plus pricing model focused on a
corporate-mandated target margin for pricing all its
automotive aftermarket parts. In many cases, however,
parts pricing was reduced when customers complained that
costs were too high. When price reductions were made, the
prices of other parts were never adjusted to help offset the
margin loss. At the same time, the manufacturer had no
visibility into competitor pricing and how the market would
react to specific pricing decisions. This lack of visibility
into competitor pricing data led to delayed notification
of changes in the market conditions and missed pricing
opportunities. By not pricing correctly and reacting quickly
to the competition, the manufacturer was losing tens of
millions of dollars in revenue, volume, and margin.
Auto AfterMArket PArts leADer neeDeD to
cAPture tiMe-sensitive Pricing oPPortunities
Why Pros
• Complete integrated pricing solution provides faster
time to value and lower total cost of ownership
• Real-time integrated science assures maximum
margin and profit improvement
• Guaranteed project success delivers demonstrable
ROI within 30 days
• Industry-leading experience and expertise ensure
long-term success built on a culture of partnership
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
54
Pros estAblishes tArgeteD, MArket-bAseD
Pricing using science-bAseD recoMMenDAtions
This manufacturer selected PROS to optimize pricing through
science-based segmentation, pricing guidance, and PROS
Scientific Analytics. PROS was the only vendor who
could meet their implementation timeline. This ability to
deliver in a timely manner, combined with the lowest total
cost of ownership, made PROS best suited to fulfill the
manufacturer’s requirements for a clearly defined payback
period and overall ROI.
“Pros was the only vendor that could
meet our implementation timeline
combined with the lowest total cost-
of-ownership requirements, while also
meeting a defined payback period and
our overall roI objective.”
competitor opportunity report shows which parts
offer the greatest opportunity for price changes
and increases
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
54
“By identifying targets for margin
opportunity with Pros, the pricing team
can quickly adjust prices for individual
parts and bring them in line with both
optimized and competitive prices.”
PROS worked with the manufacturer’s IT team to leverage
existing transaction data and then added new competitive
data through PROS Scientific Analytics, configured
specifically for the automotive parts industry.
These combined data sets enabled pricing managers to
immediately analyze prices relative to those of their
competition and rank margin opportunities by part number.
By identifying targets for margin opportunity, the pricing
team could then quickly adjust prices for individual
parts and bring them in line with both optimized and
competitive prices.
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
76
In addition, the PROS solution enabled this company to gain
a better understanding of the details behind pricing for each
part number, so that product line managers could develop
strategies for market-leading pricing. Prices that were
incorrectly set below those of the competition were found
and corrected. The company also took advantage of
PROS/Microsoft® out-of-the-box integration capabilities
to export pricing files using Excel®.
rAPiD tiMe to iMPleMentAtion Delivers Millions in
Pricing iMProveMents in unDer A Month
The PROS solution identified five to six million
dollars in pricing improvements in the first 28 days of
implementation. Today, product line managers, who
are responsible for pricing tens of thousands of parts,
can effectively use PROS to capture time-sensitive profit
opportunities and successfully implement competitive
pricing for each and every part.
track total sales
of different parts
against dealer unit
cost and unit price
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
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Pros Pricing solution suite
PROS Pricing Solution Suite™ consists of four modules that work together to get you to Pricing Excellence
scientific AnAlytics
Identify segment-specific pricing, find opportunities
for margin improvement, and forecast and monitor
your progress proactively
Price oPtiMizer
Create the right price for each customer and product
by setting science-based optimized pricing strategies
and managing price lists automatically
Monitor your performance and adherence to policy
DeAl oPtiMizer
Quote the right price for each deal by using
guidance, market insights, and integrated approval
workflows
rebAte oPtiMizer
Centralize and manage your rebate programs, and
measure the effectiveness on deal profitability
Customer Success Study: Auto Parts ManufacturerCustomer Success Study: Auto Parts Manufacturer
PB8
PROS Holdings, Inc. (NYSE: PRO) is a big data software company that helps
customers outperform in their markets by using big data to sell more effectively.
We apply 27 years of data science experience to unlock buying patterns and
preferences within transaction data to reveal which opportunities are most
likely to close, which offers are most likely to sell and which prices are most
likely to win. PROS offers big data solutions to optimize sales, pricing, quoting,
rebates and revenue management across more than 30 industries. PROS has
implemented more than 500 solutions in more than 55 countries. The PROS
team comprises more than 650 professionals around the world.
To learn more, visit www.pros.com.
About Pros
Pros.com
Copyright © 2013, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This
document is not warranted to be error -free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and
conditions of merchantability or tness for a particular purpose. We specically disclaim any liability with respect to this document and no contractual obligations are formed either
directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our
prior written permission.
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