Market-Based Pricing: 5x the revenue target

At Konecranes (global industrial equipment manufacturer, 16,000+ employees), pricing in the used-equipment market relied heavily on sales-team experience, with limited ability to systematically exploit market signals.

The problem

Across a portfolio of more than 100 categories, prices could diverge from the value the market could actually support: too low out of caution, or too high for lack of objective data.

The challenge was to move from an approach primarily based on sales experience to a market-data-driven pricing approach capable of identifying the price level that maximised captured value.

The approach

I initiated the project with the business and built a dedicated squad to design and deploy the Market-Based Pricing approach.

• Defined a pricing approach based on market data rather than internal costs alone.
• Selected one pilot category among more than 100, to demonstrate the value of the approach on a controlled scope before considering expansion.
• Framed the need with sales teams and supported implementation in an international, fully English-speaking context.

The trade-offs

Focusing the effort on a single category was deliberate: demonstrate the model’s economic value quickly rather than dilute resources across the whole portfolio.

The goal was to turn a Data Science topic into a measurable business outcome, with a scope focused enough to allow concrete validation by business users.

The result

€5M in revenue generated against an initial €1M target, or 5x the target, on this single pilot category.

This performance demonstrated the ability of Market-Based Pricing to turn market data into a direct value-creation lever.