Case Study: American Standard
SPA led American Standard’s Strategic Pricing Initiative through its pilot stage in 2005. SPA worked with American Standard’s wholesale distribution channels to move away from an undisciplined, non-strategic “cost-plus” approach to a market value-based, strategic architecture with improved internal processes and controls.
Working with operational leaders, SPA developed pricing strategies appropriate to maximizing the profitability of both business units. The project covered virtually every aspect of American Standard’s pricing mix:
- competitive strategy and positioning
- channel pricing strategy into distribution: List prices, discount tiers, rebates, exception pricing guidelines
- distributor special price request rationalization
- good/better/best positioning of products
- management/rationalization of channel coop funds
SPA currently works with several of American Standard’s building products distributors with its Strategic Pricing for Distribution programs.