Why Most Pricing Diagnostics Fail to Deliver Results

The Problem with Traditional Pricing Assessments 

Many organizations invest significant time and resources in pricing diagnostics, only to find themselves with a report that sits on a shelf. The teams feel exhausted, finance remains skeptical, and the burning question persists: “What do we actually do now?” 

The issue isn’t the assessment itself, it’s that most diagnostics stop at identifying problems without providing a clear path to capturing the value. Internal stakeholders often respond with: “We already knew there were issues. Show us how to fix them and prove the impact.” 

At SPOSEA, we’ve taken a different approach. Our margin improvement diagnostic doesn’t just reveal where you’re losing money; it quantifies the opportunity, prioritizes the actions, and delivers a roadmap for sustainable margin recovery. 

The Margin Improvement Diagnostic: From Insight to Impact 

True pricing diagnostics must serve two critical purposes: 

Quantitative: Stop margin erosion, close leakage gaps, and deliver measurable EBITDA improvement 

Qualitative: Increase commercial team effectiveness, accelerate decision-making, and enhance pricing governance 

Our Proven Framework: 7 Phases to Sustainable Margin Growth 

Drawing on 17+ years of pricing transformation experience across industrials, chemicals, and manufacturing, we’ve developed a systematic approach that consistently delivers a minimum of 3-6% margin uplift:

From Diagnosis to Delivery

A Systematic Approach to Sustainable Margin Growth
The 7-Phase Margin Improvement Framework
1
Rapid Data Integration
Connect directly to SAP ERP. Extract transactional data at customer-material level. Establish baseline in days.
Outcome:
Complete pricing waterfall visibility from list to pocket price
2
Root Cause Analysis
Apply AI-powered analytics across 7 diagnostic views to uncover the “why” behind margin leakage.
Outcome:
Top 5-7 margin leakage drivers identified with quantified impact
3
Opportunity Quantification
Build business case with estimated margin impact (€), implementation complexity, and time to value.
Outcome:
Prioritized initiatives with ROI projections and confidence levels
4
Pain Point & Lever Mapping
Identify operational friction and define specific pricing levers with impact simulation using actual SAP data.
Outcome:
Action-ready levers with forecasted P&L impact and KPIs

Sustainable & Outcomes-Driven Results

5
Strategic Alignment
Facilitate cross-functional workshops to validate findings and secure C-suite commitment.
Outcome:
Executive-approved roadmap with clear ownership
6
Implementation Roadmap
Sequence initiatives: Quick wins (0-3 months), strategic (3-12 months), continuous improvement (12+ months).
Outcome:
Phased action plan balancing speed-to-value with transformation
7
Execution & Tracking
Deploy SAP-ready change sets, KPI dashboards, governance frameworks, and team enablement programs.
Outcome:
Measurable margin improvement with accountability
3-6%
of Revenue as Margin Improvement
5-10x
ROI in Year One
15+
Years of Expertise
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