Case Study: Perstorp recovers $1M/month in margin leakage and boosts pricing discipline by 42% with PROS

Real-time, algorithmic price guidance enables informed, data-driven responses in an increasingly competitive and transparent marketplace

Perstorp, a Malmö-based specialty chemicals manufacturer with about 1,350 employees and $540M in revenue, faced inconsistent, slow pricing practices that caused significant margin leakage. Between 2009 and 2013 EBITDA barely grew while revenue rose 31%; updating prices to reflect volatile raw material and freight costs was too time-consuming, and the company lacked visibility into sales reps’ pricing performance.

Implementing PROS’ algorithmic pricing guidance and the PROS Pricing Discipline Index gave sales teams real-time recommendations and visibility into leakage while enabling accurate tracking of pricing improvement. As a result Perstorp recovered roughly $1M per month in margin leakage, lifted EBITDA margin by 20 basis points over their previous best year, and improved pricing discipline by 42%, substantially reducing underperforming transactions.

Perstorp