What happened when Dynapac, a worldwide leader in road construction equipment, turned to Vendavo
When it wanted to centrally manage pricing and reduce unnecessary discounts for its aftermarket parts and capital equipment, it implemented Vendavo’s Pricepoint and Intelligent CPQ solutions.
Highlighted Business Outcomes
Reduced time-consuming special pricing approvals by 90 percent.
Gained central control of all pricing and discount terms for better accuracy and margins.
Focused on improving margins across aftermarket and capital equipment product lines.
Highways, roads, and airports are vital connectors for commerce, communications, and everyday travel. Streets and runways are essential infrastructure for economies and communities.
Dynapac, a leading supplier of soil compaction and paving equipment, enables the construction of these roadways and even likes to say it is a “committed partner on the road ahead” for highway, road, and airport constructors worldwide.
A major objective for Dynapac was to centrally manage pricing and reduce unnecessary discounts for its aftermarket parts and capital equipment.
Our road construction equipment is expensive and complicated to spec and quote. CPQ Cloud puts all options and pricing in one central location that our sales and account management teams can access. Speed and accuracy are the primary drivers for this case, and we estimate we can cut quote times in half at least.
Stephan Fessner is Head of Commercial Management and Processes at Dynapac and it’s his job to make sure that products and pricing are optimized to drive sales. When Fessner first took on the role two years ago, he found that Vendavo® Pricepoint was already being used to manage pricing for the Dynapac aftermarket line of business and was seeing good results. But he knew they could do better.
Working with Vendavo pricing consultants, Fessner immediately embarked on a plan to optimize Vendavo Pricepoint, and make it ready to roll out for Dynapac’s capital equipment lines as well. They also determined Vendavo Intelligent CPQ for configuring, pricing, and quoting its capital equipment lines would be a benefit in the long-term.
Fessner and the Vendavo optimization team started with the basics in the aftermarkets optimizationengagement by setting target and floor prices by country, region, and customer type, making it easier to set policies by segment. Pricing models were analyzed and tested to validate new policies.
“As with any change, people resisted at first, but once we could prove to them the value of more standardized pricing and fewer special approvals, adoption and acceptance grew quickly,” Fessner said. “We learned we could trust the data and pricing guidance to help us win more sales with fewer special approvals and delays.”
With more than 70,000 Dynapac SKUs tracked and managed in Vendavo Pricepoint, Fessner said having master pricing control all in one place is key.
70,000
Our road construction equipment is expensive and complicated to spec and quote. CPQ Cloud puts all options and pricing in one central location that our sales and account management teams can access. Speed and accuracy are the primary drivers for this case, and we estimate we can cut quote times in half at least.
Results
“Since implementing Vendavo Pricepoint, we’re working to improve margins on average across all product lines,” Fessner explained. Additionally, Vendavo Pricepoint finetuning will continue across all countries, markets, and product lines. In the meantime, CPQ Cloud is coming online to help with configuration, pricing and quoting for the soil compaction and road paving capital equipment lines.
“Our road construction equipment is expensive and complicated to spec and quote,” Fessner said. “CPQ Cloud puts all options and pricing in one central location that our sales and account management teams can access. Speed and accuracy are the primary drivers for this case, and we estimate we can cut quote times in half at least.”
Overall, Fessner said the implementation experience has been excellent. The Vendavo team has been responsive and accountable. The most important result, however, is Dynapac’s readiness to respond to competitors and marketplace dynamics.
Fireside Chat with Stephan Fessner
In this Fireside Chat from Vendavo’s Growth + Profitability Summit 2023 in Stockholm, Chris Kennedy-Sloane, Business Consultant at Vendavo, talks with Stephan Fessner, Head of Commercial Management and Processes at Dynapac, about how to communicate pricing value within an organization, why getting stakeholder buy-in matters during pricing transformations, and current pricing trends and challenges.
