Case Study: a large MRO and construction supplies distributor improves margins with Ugam price optimization

Large MRO and Construction Supplies Distributor - Customer Case Study

A large MRO and construction supplies distributor wanted to improve its overall revenue by increasing margins on its ancillary products. To address this challenge, they turned to Ugam and deployed its price optimization framework and tools.

Ugam implemented a data-driven pricing solution that utilized price elasticity, competitor data, and internal business rules to generate specific recommendations. For example, it lowered prices on highly elastic items and raised them on inelastic ones. This strategy allowed the distributor to offer competitive prices that customers were willing to pay while maximizing margins. As a result of Ugam's work, the distributor achieved a 3-4% increase in margins across some categories.