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Pricing

Pricing is an under optimised performance lever in the Animal Health Industry.

SC Pricing drives sales and margin improvement by applying quantitative analysis and improved processes.

Typically, SC Pricing addresses topics such as:

Price optimisation through the life-cycle

  • Launch pricing
  • In life pricing re-fresh and price ladder optimisation
  • Managing the long tail, e.g.: price increases and SKU rationalisation

Pricing processes

  • Annual planning process to maximise sales vs. margin growth
  • Local pricing versus multi-country pricing corridors
  • Trade terms evolution to payment for performance
  • Key account management controls, e.g.: Gross to Net
  • Pricing vs. Competitors; benchmark with competitors’ price

Pricing strategy

  • Aligning pricing with overall Go-to-Market goals
  • Lessons to be learnt from Consumer Goods pricing
  • Future-proofing pricing as the AH market evolves, e.g.: Vet groups, Ecommerce

SC Pricing uniquely combines deep AH experience with World leading pricing expertise.

Our clients are telling us that pricing is increasingly important as an AH performance lever, and this has been amplified by disruptions like the rise of vet groups, growth in e-commerce, and evolving intermediary models. Industry consolidation has left a long tail of under optimised products.

Like all our SC work we combine rigorous analysis with teaming closely with you to ensure the recommendations are actionable.  Please contact us to find out more about how we can support you with our pricing and margin challenges.

Contact Us

Glenn Granger

Senior Advisor

James Walker

Senior Advisor

Matthias Hofer

Managing Partner

Example Projects

Optimise SKU Price Ladders

We invert the price ladder by dividing through by dose/ units per pack. We then maximise overall margin by stretching the price ladder represented in this new way. We stretch the price ladder at the top, so higher priced large format SKUs don’t have price dilution.

Manage Long Tail SKUs

We rationalise out low turn, low margin, highly substitutable SKUs. We are then able to re-price the price ladder to move consumer volume to highest margin SKUs within a tighter assortment. Between SKU rationalisation and price increases we achieve a more profitable long tail.

Build Pricing Capabilities/ Pricing Training

We support clients with better pricing governance and decision rights, e.g.: sign-off of incentives and discounts for intermediaries. Training covers how to create pricing rules and understanding of core “unlocks” e.g.: substitution effects within a portfolio, price ladders and inverting price ladders by dividing through by units.  We also advise on data, reporting/ visualization, analytics, and pricing tools.  We have a good overlap with SC’s Data and Analytics capabilities as well.

Deals

We can work with you to analyse Pricing in a Deals context. As part of Pre-deal CDDs, where the data is available, we examine opportunities such as big pricing differences between countries and inconsistencies in the price ladders. Post deal Value Creation finds immediate quick wins on pricing and longer term more strategic price re-positioning.  In the case of a merger of portfolios, there is the opportunity for SKU mix and portfolio pricing harmonisation.

Margin Improvement Diagnostic

We analyse which SKUs are margin dilutive, and model scenarios for price increases versus potential volume loss and flow to other SKUs in the client’s portfolio. We are able to suggest a remedy plan for clear pricing actions.

Contact Us

Glenn Granger

Senior Advisor

James Walker

Senior Advisor

Matthias Hofer

Managing Partner
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Global HQ

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United Kingdom

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Florida, 32746 USA