Refinement of the Pricing Model for an Online Marketplace in the Construction Sector
Challenge
The pricing model of an online marketplace in the construction sector was to be refined in order to return the company to a growth trajectory and reduce margin pressure
Approach
Management and market interviews, analysis of usage data and price elasticities, and competitive benchmarking
Synthesis and development of individual concepts per customer segment (tenders, contractors, and construction suppliers), e.g.: free trial offers for new general contractors, per-project flat fees for private builders, premium packages with upselling incentives, regional price differentiation, and revision of long-term discounts
Result
Single-digit million earnings effect through better capture of varying willingness to pay and acquisition of new customers via attractive entry-level pricing