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Gorlitz Case Study
Situation:
For the first time in 15 years, Gorlitz experienced a decline in sales. Rising prices in the raw material and component markets over recent years have significantly impacted the company’s profitability.
Gorlitz built its reputation on delivering high-quality sewer and drain solutions at competitive prices. However, due to ongoing cost pressures, the company has been compelled to adjust its pricing structure, which has made it more challenging to maintain its previous affordability.
In response to these challenges, Gorlitz has had to adapt by sourcing wiring components from international suppliers to remain competitive and manage costs effectively.
Mission:
To address rising costs and maintain its market position, the company engaged B&K and Hubbell to develop more competitive pricing strategies.
Execution:
B&K delivered the necessary pricing adjustments to retain Gorlitz’s business, while I collaborated directly with Hubbell to realign their price levels. These targeted actions ensured that Gorlitz could maintain its commitment to quality and value, even in a challenging market environment.
Result:
As a result of our strategic efforts, we successfully secured favorable pricing adjustments. We have now procured a specified item at a 70% discount, significantly enhancing its competitiveness. Additionally, specific devices have been placed at a 55% discount, ensuring substantial cost savings and increased value for Gorlitz.