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HOOGResearch & Advisory

Industrial & Manufacturing

Price Positioning and Value Selling for Industrial Pumps

Understanding transaction-level price positioning and building a total-cost-of-ownership value story to defend a premium.

Example engagement
Client
Industrial pump manufacturer
Industry
Industrial & Manufacturing
Geography
India and the Middle East
Duration
6 weeks
Capabilities
Pricing Research, Competitive Intelligence

Research design at a glance

How the work is structured

India and the Middle East · 6 weeks

  1. 1

    Channel price checks

    Transaction price information from dealers and contractors.

  2. 2

    Value-driver interviews

    Plant engineers and procurement managers.

  3. 3

    Total-cost-of-ownership analysis

    Energy, maintenance and downtime costs.

  4. 4

    Sales team interviews

    Discounting practices and objections.

Qualitative depth

Interviews, groups & observation

  • Buyer interviews~20
  • Sales interviews~8

Quantitative scale

Surveys, audits & measurement

  • Channel price checks~40

Sample sizes are indicative of a typical design for this type of question; real engagements are scoped to the decision.

01

Client context

The manufacturer positioned itself as premium but faced intense price pressure and inconsistent discounting.

02

Business challenge

List prices did not reflect actual transaction prices, and sales lacked tools to justify the premium.

03

Research objective & questions

Map real price positioning versus competitors and develop a value-based selling approach.

  • How do transaction prices compare with competitors by segment?
  • Which customers value reliability and energy efficiency enough to pay more?
  • What total-cost-of-ownership advantages can be demonstrated?
  • Where is the company over- or under-priced?

04

Methodology & approach

Channel price checks
Transaction price information from dealers and contractors.
Value-driver interviews
Plant engineers and procurement managers.
Total-cost-of-ownership analysis
Energy, maintenance and downtime costs.
Sales team interviews
Discounting practices and objections.

05

Sample & geography

  • ~40 channel price checks
  • ~20 buyer interviews
  • ~8 sales interviews
  • Geography — India and the Middle East

06

Key findings

  • Premium was accepted in continuous-process industries where downtime is costly.
  • Energy efficiency was poorly communicated despite being a real advantage.
  • Discounting was highest where sales lacked a value story.
  • In some standard applications the company was over-priced relative to value.

07

Business implications

  • Segment pricing by application criticality.
  • Equip sales with a total-cost-of-ownership calculator.
  • Introduce a value-engineered range for standard applications.

08

Outcome

The manufacturer received a price positioning map, value-selling toolkit and segment pricing guidance.

Example engagement — Shows how Hoog approaches this type of question. Not a specific client project. Findings are directional.

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