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Case Studies: Revenue Enhancement

Other Case Studies: New Market Opportunities | Product Improvements | Organizational Excellence

These case studies are examples of EastSight Consulting CEO Parmelee Eastman's experience.

Entering a Complementary Market in the Storage Arena:

A company offering a software product supporting enterprise storage installations developed a similar offering for the distributed storage arena. In order to create the marketing materials and pricing structure for the distributed product launch, the company needed additional information on the distributed storage market and how existing providers were satisfying their customers. A market assessment gleamed from conversations with potential users as well as with partners and employees of two organizations with existing products revealed that the market was small, but growing. A market awareness program launched shortly after the product announcement yielded short-term qualified leads for the client as well as a wealth of information on longer term prospects.

Results: Our client could structure its pricing to maximize revenue and position its product to be unique in the marketplace. The subsequent market awareness program turned the information from the initial market assessment into tangible revenue potential for the client.

Determining Pricing Patterns in Tough Economic Times:

A software firm knew that the market for its products had softened due to the recession; however, it needed to understand the degree of softness in order to maximize its revenue opportunities. It did not want to price high and lose deals nor did it want to price low and lose the additional revenue. Users and peers were interviewed to understand how companies negotiated deals. We discovered that a limited amount of additional discounting occurred, but the most significant change was the inclusion of functions and services not included in stronger economic times.

Results: The firm revised its pricing structure and its discount guidelines to sales to garner more revenue from existing opportunities.

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What Users Are Really Paying for Communications Services:

An aggressive competitive telecommunications service provider wanted to insure that it was a price leader. In order to implement this tactic, the company needed to understand the street pricing, not the official list pricing, of key services. The client targeted private line, both US and international, Internet access, voice, and colocation. Pricing analysis requires clear descriptions of the services to insure comparable components. Therefore, knowledgeable sources at similar companies were contacted to obtain the list pricing, detailed description of the services offered, contract terms and conditions, and discount structures. With this information, customers were interviewed to determine the actual pricing, including standard or special discounts, were received.

Results: The client compared the pricing of its offerings with competitive services, adjusted its pricing, and incorporated its pricing leadership message in its marketing materials.

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What Are the Real Consulting Rates for Systems Engineers?:

A large provider of systems engineering consulting services entered into a difficult negotiation with a major client who was asserting that the contract rates from competitors were substantially below those offered by this provider. The company sought help in determining and documenting the standard rates for a wide variety of industry participants. First, we needed to establish the criteria for each level of systems engineers (SE) to ensure valid comparisons. Our primary research began with interviews with users of competitive consulting services who provided independent verification of the rates in their contracts. Sources at the other industry participants provided the standard ranges for multiple levels of SE expertise and the multiple factors that were used to establish rates in individual situations. Our client found that the written transcripts of the interviews illuminated the context for the summary information placed in a chart and provided insights into the pricing models at several of these companies.

Results: In addition, our client found our research very valuable in illuminating the target customer segments, marketing strategies, business structure, and normal margin of the companies studied. By learning the rates of systems engineers, our client was able to draft a more competitive bid for IT outsourcing.

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Leveraging Information to Win a Multi-Million Dollar Opportunity in the Cable Market:

A manufacturer of a major component for cable and broadcast companies lost several large contracts to a fast growing and aggressive competitor. The company needed an in-depth analysis of this tough competitor from both a strategic and tactical perspective. Research was commissioned to research the organizational structure and management philosophy to provide a strategic viewpoint. In addition, the sales and marketing tactics were analyzed to understand exactly how the company presented its capabilities and messages to prospective clients. One executive boasted that he was flying out the next day to close another key deal worth $20 Mil.

Result: The client learned that the competitor sent its few seasoned executives to close business around the world and that some of its marketing messages could be easily countered. Based on our information, the client scooped the $20 Mil deal away from the competitor.

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Protecting Revenue Streams from New Market Entrants:

A wireless service provider heard hints about a major company's activity in a large metropolitan area in the Midwest and sought to understand its progress and plans as well as how other industry players would react to this new threat. Topics for the research included initial service roll-out, geographic areas to be served, and potential problems stemming from a shortage of dual-band phones. Detailed information on antenna-installation rates, a service-initiation estimate that turned out to be highly accurate, and contingency plans to deal with equipment shortages were obtained through a series of interviews with public officials, journalists, supplier representatives, and employees at the target firms.

Results: This wealth of information allowed the client to create concrete tactics to combat this new entrant thereby protecting a substantial source of revenue. As an added bonus, the tactics garnered business from the other players in the metropolitan area.

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