Pricing and margin review for an industrial manufacturer
Revenue up a fifth in two years, and gross margin down four points.
2025
Strategy and performance
September 2025
Industrial manufacturing
Family
What the owner got.
Gross margin, points
+4.2
Customers loss making before the review, %
33
Weeks to the new price list
7
Quarters to the full effect
2
Source: client management accounts, September 2025 and March 2026. Shown with the client’s written permission.
The work
What happened, in order.
2
The situation
Revenue had grown a fifth in two years while gross margin fell four points. Prices had not been reviewed since the last owner left.
Family
Industrial manufacturing
190 people
UK
What we did
Profit by product and customer, built from the ledger up. A third of customers were loss making once delivery and rebates were counted.
What made the difference
A price list rebuilt around cost to serve, and a monthly tracking pack the board still uses.
Ten weeks, four phases.
Data and interviews in weeks one and two, profit by product and customer from week two to five, the pricing review from week five to seven, and the operating plan and targets from week seven to ten.
“We had been selling more and earning less. Now we know why, customer by customer.”
Managing director, name withheld. Shown with written permission.
Who led it
The partner on this case.
3
Next step
Facing something similar? Speak to the partner who led this.
We reply within one working day, Monday to Friday.
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