Production & Heavy Industry Companies sell output & reliability

Production, logistics, and heavy industry companies operate in capital-intensive environments where revenue is driven by throughput, utilization, and operational reliability. Growth is constrained by physical capacity, asset availability, and complex cost structures rather than by pure demand generation. Understanding this reality is essential to improving pricing, margins, and commercial decision-making.

Margins are shaped by fixed costs and utilization levels
Revenue depends on volume, uptime, and efficiency
Sales is technical with people who may not be trained commercially
Pricing is often inherited rather than actively managed
Commercial decisions are tightly coupled with operations

Our Experience in Production & Heavy Industry

Typical Commercial Setup

Most production and heavy industry companies have evolved their commercial setup around operational excellence rather than pricing or revenue optimization. Sales and pricing decisions are often driven by historical precedent, cost assumptions, and volume targets, while true profitability varies widely across customers, products, and routes.

Sales and operations are tightly intertwined
Pricing is often cost-plus or volume-driven
Engineers are a bottleneck for sales
Commercial decisions prioritize utilization over margin
Profitability transparency is limited

Pain points we see in the industry

Revenues of Production and Heavy Industry companies rely heavily on volume, while margins erode through inefficiencies in sales, delivery execution, underpricing, and weak price enforcement. Pricing power exists but is rarely applied confidently.

Sales

Sales focused on securing volume, not margin
Commercial negotiations driven by precedent, not value
Limited tools to explain price differences
Value framed around cost and effort, not outcome
Weak linkage between sales decisions and profitability

Pricing

Pricing varies widely across similar customers or contracts
Prices anchored to historical agreements
Inflation and cost increases passed on too late or inconsistently
Pricing not tied to Value and neither size of the business
Added Value services not priced or not at acceptable margin levels

Delivery

Customers get the same service levels
No monetization of different service levels
Operational inefficiencies absorbed instead of priced
Penalties and service levels not actively managed
Cost to serve not visible and hence not priced

What Strong Firms Do Differently

Strong production and heavy industry companies actively manage the link between pricing, utilization, and profitability. They create transparency across the value chain and enable commercial decisions that reflect both operational reality and customer value.

Pricing reflects true cost and delivered value
Commercial decisions consider utilization and margin
Sales teams understand operational constraints
Contracts are actively steered, not passively executed
Leadership has clear visibility into profitability drivers
Service levels are monetized, with clear visibility into cost to serve across customers and contracts