Solution Story · Pricing Platform

Every price on purpose

In distribution, price is everything — and at this client, every customer at every branch for every product can have a different one. That's not a bug; it's the business model. The question was how to make hundreds of thousands of prices deliberate instead of accidental. The answer is a closed loop of four systems.

The problem

When everyone can set a price, no one owns the margin

A hundred-plus branches, each operating with real autonomy. Thousands of vendors changing costs constantly, each announcing it their own way. Salespeople granting special prices to win jobs. Every one of those decisions is locally reasonable — and collectively, without governance, they quietly erode margin across millions of transactions. Spreadsheets can't govern this. Neither can memos.

The goal wasn't to take pricing power away from the branches. It was to give everyone guardrails — so local judgment operates inside company strategy.
Governance, not centralization
What we built

Four systems, one closed loop

True costs in, governed margins applied, exceptions by workflow, customer-ready prices out — and an audit function double-checking the results downstream.

1 · Cost update thousands of vendors' cost changes normalized in one place, applied automatically 2 · Margin guardrails company → region → warehouse cascading margin points per product line · 10–20M records 3 · Special prices request → pricing team review margin & sales-history impact approve · adjust · decline Distribution ERP pricing condition data · date-aware live price always lands inside the margin approved conditions loaded automatically 4 · Price sheets printable per-customer booklets — tens of thousands of prices, grouped & ready ✓ Invoice-line auditing ~5M lines re-checked yearly — catches whatever still slips through
True costs feed governed margins; exceptions flow through workflow; the ERP quotes inside the guardrails; auditing closes the loop.

The margin cascade

Strategy at the top, judgment at the edge — with each level choosing only within what the level above allowed.

Company defines the range

Available margin points per product group and product line, per region — say, anywhere from the low twenties up to 40, 50, 60 points depending on the category.

Region managers narrow it

From the region's available points, they define what each warehouse may use — typically two to three margin points per product group. More granular, still governed.

Warehouse managers apply it

Margins assigned per customer or customer group. The result becomes pricing condition data in the ERP — so every live quote automatically lands inside the intended margin, date-aware.

Special prices, without the back channel

Winning a job sometimes needs an exception. Exceptions now have a process instead of a phone call.

Step 1

Request

A branch salesperson requests a special price — for a product or group, for a customer or group.

Step 2

Review

The pricing team sees margin impact and that customer's sales history for the product.

Step 3

Decide

Approve, adjust with a counter-proposal, or decline — recorded and auditable.

Step 4

Load

Approved conditions (product+customer, or customer+group) load into the ERP automatically.

Step 5

Quote

The branch quotes the customer — and gets the special price without touching anything.

Price booklets a contractor can carry

A contractor walks into a branch needing prices for a job — or to quote their own customers. The platform prints a booklet of their prices: logically grouped, range-divided, tens of thousands of customer-specific calculations formatted on demand. The pricing machinery becomes something you can hand across a counter.

Costs you can actually trust

Margins are only as good as the costs beneath them. With thousands of active vendors announcing changes in their own formats, the cost-update module normalizes everything in one place and applies it automatically — so the guardrails always stand on current ground.

Results

Pricing policy that executes itself

10–20M
pricing records governed
1000s
of vendors' cost changes normalized
3
governance levels: company → region → warehouse
0
special prices outside the workflow
Every customer, at every warehouse, for every product, can have its own price — and every one of them is deliberate.
Complexity, governed