Xylem prices spare parts and +1 million configurations profitably with Vendavo

Discover how world’s leading water technology company benefits from value-based pricing and faster, more accurate quoting.  

Highlighted Business Outcomes

Value-based pricing

Pricing program uncovers customers’ perceived value; results in market-driven price, not cost-driven. 

Faster, more accurate quotes

Quick, accurate quotes across an extensive product portfolio with millions of possible configurations.

Single source of truth

ERP, configuration and quoting comes from one system for right-fit pricing across +1 million possibilities. 

Getting strategic with spare part pricing

The challenge in pricing spare parts is identifying the customer’s perceived value across a vast number of products and configurations. The challenge was to identify key price drivers, build a system using AI/ML pricing techniques, and implement a framework that could support new parts pricing, with easy price maintenance and revisions. They began with prioritizing their spare parts based on profitability and then sought customer feedback. Market surveys were conducted with customers and internal employees to develop perceived value for key parts for 8 countries. 

Waterpark Xylem Case Study

The ROI is better than expected.

Niklas Lindstrom
Pricing Manager

Configuring millions of possibilities for fast, accurate quoting

Xylem turned to Vendavo not just for a pricing project for their spare parts business, but also a Configure, Price, Quote (CPQ) for the manufactured and configurable products for one of their core business units. 

Vendavo supports pricing for Xylem’s portfolio of 300 base products which has millions of possible product configurations. The challenge was to price a configuration for quoting, without having to create an identity /part number for each variation – especially if it wasn’t actually sold. This would have generated millions of unused records – unnecessarily burdening the resource planning systems. 

Commercial Shipping Water Xylem

I receive a lot of questions about why pricing is the way it is and now I can quickly look up the product and explain the logic of the pricing. Sales now agrees and can defend that price.

Niklas Lindstrom
Pricing Manager

Seamless workflow and optimized pricing for improved profitability

With Vendavo, Xylem identified three levels of key price drivers that were used to develop Al/ ML pricing techniques. Customer perceived value was considered along with product attributes. They now have the insights and framework that supports new parts pricing, with easy price maintenance and revisions – all tied to Xylem’s value based and market driven pricing strategies. 

They can also quickly calculate configurations and prices that enable the sales team to quickly build bespoke quotes for each of their customers‘ requests. 

Aquaculture Xylem

Industry Challenges & Vendavo Outcomes


Xylem Inc. is a large American water technology provider for public utility, residential, commercial, agricultural, and industrial settings. The company does business in more than 150 countries and employs more than 17,000. 

Fast Facts

Website: www.xylem.com 

Vendavo Products: PricePoint, Intelligent CPQ 

Industry: Manufacturing 

Region: Washington D.C. headquarters 

Offices: Conducts business in 150+ countries 

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