Development of effective product project pricing model – Case Evac Group

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Journal Title

Journal ISSN

Volume Title

School of Business | Master's thesis

Authors

Date

2024

Department

Laskentatoimen laitos

Major/Subject

Mcode

Degree programme

Accounting

Language

en

Pages

70 + 2

Series

Abstract

In this thesis, the role of pricing in sales (bidding) process in product projects is studied. This is a thesis assignment provided by Evac Group. The main objective was to create a product project pricing model that can be implemented on Salesforce CPQ system. While cost-plus pricing is widely used due to its simplicity, other strategies such as competition-based and value-based pricing should not be overlooked. In rapidly evolving business landscape, companies should consider all available market information to maximize profitability in the long-run. Both quantitative and qualitative research methods were used in this study. Past data from 2019-2024 was analysed in terms of project type, project won/loss and gross margin %. Qualitative part consisted of six interviews: five semi-structured with sales and one unstructured with procurement department. These interviews were held to gain understanding on the current pricing practices at Evac Group, and project bidding process. In addition, current usage of Salesforce CPQ and related issues were discussed. Procurement was interviewed to understand cost update process. Although the study is specific for Evac Group’s needs, the findings of the study, the suggested pricing model, and related implications may prove to be useful for companies which pursue project business in similar industries.

Description

Thesis advisor

Malmi, Teemu

Keywords

pricing model, pricing strategy, project sales, bidding process

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Citation

Permanent link to this item

https://urn.fi/URN:NBN:fi:aalto-202406234812

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[gradu] Kauppakorkeakoulu / BIZ