The Challenge
A chain of hardware stores was bleeding margin due to excessive "price matching" policies and untracked discounts.
The Solution
We implemented a "Discount Ladder" policy, restricting sales staff to specific tiers (5%, 10%) based on volume thresholds. We also stopped price matching online-only competitors.
The Result
Gross margin improved by 400 basis points (4%) in Q1, adding $500k in pure profit.