Case Study: Leading Global CPG Firm achieves $15.6M annual profit opportunity with TheMathCompany

A Global Distributor of Plumbing Supplies Unlocked a Potential Annual Profit of $15.6m by Optimizing Pricing

TheMathCompany worked with a leading global CPG firm that was acting as a global distributor of plumbing supplies. The company served more than 100,000 customers across about 7,000 products, but its pricing was difficult to control because sales teams could negotiate or override centrally recommended prices. With 50% of transactions and 70% of revenue already happening at non-recommended prices, the firm needed a better way to align pricing with customer behavior and improve profitability.

TheMathCompany built a price optimization application that combined customer segmentation, price elasticity modeling, price simulation, and field experimentation. It simplified 38 legacy segments into 15 intuitive ones, modeled demand at the product-customer segment level, and identified optimal price ranges for each customer. The solution delivered a potential annual profit uplift of $15.6 million and tailored pricing for 100,000 customers across the product portfolio.