How to Deflate Margin Pressure

The Challenge

Products margins are under pressure from all sides today. Customers have more choices in virtually every category–and more access to product & pricing information than ever. How your team responds to these pressures also impacts margins through discounting, customization, and give-aways. How do you separate fact from perception?

There are no one-size-fits-all solutions but there are proven processes to follow.

The Solution

During our DISCOVER process, we review your specific margin challenges with your product development, marketing and sales teams. Together we uncover the core issues and develop countermeasures to address them.

Some clients will take it from there. Others will engage us to drive cross-functional teams to implement the selected strategies. It’s helpful to have an outside facilitator when dealing with sensitive issues.

Case # 1

Integrated Hardware/Software/Services Business

Case # 2

Precision Mechanical Product Business

  • Project Margin Before 31% 31%
  • Project Margin After 39% 39%
  • Product Margin Before 38% 38%
  • Product Margin After 47% 47%

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