Adding nine points of gross margin through pricing

The challenge

Maple & Stone makes high-quality building materials and has served many of its customers for decades. But its prices had not changed in four years, while the cost of materials had risen by 30%.

The team knew prices had to go up. They were simply afraid of what would happen when they did. Many of their customers were also old friends, and nobody wanted to make that phone call.

Our approach

We started by finding out where the business actually made money. The answer was very different from what the team expected: some of the biggest customers were barely profitable, while smaller ones were carrying the business.

What we did:

• Analysed margin by product, by customer and by order size

• Rebuilt the price list around value, not around history

• Prepared a clear, honest letter for every customer group

• Trained the sales team to lead conversations about value, not discounts

I expected angry calls. Instead, most customers told us they had wondered why we had not done it sooner.

Emma Walsh, Sales Director, Maple & Stone

The result

Within two quarters, gross margin rose by nine points. Customer retention stayed above 95%, and the few customers who left were among the least profitable.

The sales team now reviews prices every year as a normal part of the calendar. What used to feel like a risk has become a simple routine.