Master Thesis spring 2027: Assessing the Effectiveness of Volumetric Discounts for Global Customers

Master Thesis spring 2027: Assessing the Effectiveness of Volumetric Discounts for Global Customers

Functional area: Parts & Service Division (PSD) - Global Pricing Team

Recruiting manager: Arsham Mazaheri, PSD Global Pricing Manager

Education background: Suitable for students pursuing a Master's degree in:

• Industrial Engineering and Management
• Business Administration
• Economics
• Finance
• Data Analytics
• Operations Management
• Supply Chain Management
• Statistics or Applied Mathematics

Students with experience in quantitative analysis, econometrics, business intelligence, or pricing strategy are particularly encouraged to apply.

Level of thesis project: Master Thesis.

Number of students in the project: One student/project.

Target: This project aims to evaluate the effectiveness of volumetric discount programs offered to Epiroc's Global Customers.

The study will investigate whether higher discount levels successfully generate incremental sales volumes and long-term customer loyalty, or whether the discounts primarily reduce profitability without delivering sufficient business growth.

The project seeks to provide data-driven insights that can support future pricing and commercial decisions.

Background: Large industrial companies frequently use volumetric discount agreements to incentivize customers to consolidate purchases and increase spending. Within Epiroc, such pricing mechanisms are an important component of strategic customer partnerships and Global Framework Agreements.

Despite their widespread use, the actual business impact of volumetric discounts is often difficult to measure. Increased sales volumes may be attributed to factors other than price incentives, such as market conditions, customer investment cycles, or changes in operational demand.

Understanding the true effectiveness of these discount programs is critical for balancing growth ambitions with profitability objectives. A rigorous assessment can help determine whether current discount structures create measurable value, identify opportunities for improvement, and support the future development of Epiroc's pricing strategies.

Mission

Your mission in this project will be to analyze historical customer, pricing, and sales data to assess the relationship between volumetric discounts and customer purchasing behavior.

Potential research questions include:

• To what extent do volumetric discounts influence sales growth among Global Customers?
• Are volume commitments fulfilled and sustained over time?
• What is the net impact of volumetric discount programs on revenue, gross margin, and profitability?
• Which customer segments benefit most from such arrangements?
• Are there alternative pricing structures that could generate stronger commercial outcomes?

The project may involve quantitative methods such as statistical analysis, econometric modeling, customer segmentation, and profitability analysis; as well as qualitative analysis of possible customer and customer centers and sales reps interviews and questionnaires.

The project will be considered successful when it provides evidence-based conclusions regarding the effectiveness of volumetric discount programs and delivers actionable recommendations for future pricing strategies.

Expected Deliverables: The final thesis is expected to:

• Establish a framework for measuring volumetric discount effectiveness.
• Quantify the relationship between discount levels, sales volume, and profitability.
• Identify key factors influencing customer responsiveness to volume incentives.
• Assess whether incremental sales offset margin reductions.
• Provide recommendations for improving future discount and pricing programs.

Qualification: To be successful in this project, you should have:

• Strong analytical and quantitative skills.
• Interest in pricing strategy, business performance, and commercial excellence.
• Experience working with data analysis tools such as Excel, Power BI, Python, R, SPSS, or similar.
• Knowledge of statistics, econometrics, business analytics, or financial analysis.
• Strong communication skills and the ability to present insights effectively.
• Ability to work independently and collaboratively in an international environment.

Previous experience with pricing, economics, business intelligence, or industrial markets is considered an advantage but is not required.