Case Studies

Journey to Value-Based Pricing for a Leading HaaS and SaaS Provider in Fitness Tech

Technology & Media

Opportunity

The client recognised a significant opportunity to leverage pricing as a key driver for revenue growth and market leadership. By aligning the pricing model with the company’s integrated ecosystem value proposition, we saw potential to dramatically improve profitability and strengthen their competitive position in the fast-evolving fitness technology market.

Challenges

  • Inconsistent Pricing and Discounting: The company had no clear pricing strategy, and discounting practices were not standardised
  • Lack of Pricing Ownership: There was limited internal control over the pricing structure, hindering effective pricing decisions
  • Transitioning to Value-Based Pricing: The company needed to move from a cost-based to a value-based pricing model, addressing regional pricing variations
  • Assessing Subscription Models: The client explored transitioning to an all-inclusive service subscription model to stay competitive.

Outcomes

Developed a 24-month pricing roadmap to drive value-based pricing, supported by enhanced product packaging and a phased pricing strategy. This unlocked ~€2.5 million in revenue from optimising repeat customer discounts and ~€3.7 million  from improving price increase execution—boosting pricing efficiency, profitability, and long-term commercial growth.

Why It Matters

In the rapidly evolving fitness technology market, effective pricing strategies are crucial for maintaining competitiveness and profitability. By aligning pricing with the value proposition and customer willingness to pay, the company can better capture the value of its integrated ecosystem and drive sustainable growth.

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Results

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Approach

1. Data-Driven Analysis
  • Conducted quantitative and qualitative analysis of transactional and customer data to identify pricing opportunities and inconsistencies
2. Stakeholder Engagement
  • Engaged stakeholders across various seniority levels and business functions to build a solid fact base and gain buy-in for pricing initiatives
3. Pricing Maturity Assessment
  • Assessed the company’s current pricing maturity against a proprietary framework, aiming for a target maturity level of value-based pricing
4. Strategic Roadmapping
  • Developed a comprehensive 24-month roadmap to implement pricing opportunities, ensuring good execution and future pricing initiatives.
5. Pricing Framework and Product Packaging
  • Created a framework for improved product packaging to effectively communicate the value of the integrated ecosystem to customers.

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