Kmart Tyre & Auto Service was a Wesfarmers business with hundreds of stores, high transaction volume and prices set more by habit than by evidence. Tyres, labour and service menus had not been looked at end-to-end for years, and the gap between what customers would pay and what the business charged was large enough to measure in millions.
Adam led pricing and revenue management. The job was not to raise prices everywhere. It was to find where money was being left on the table and to change the behaviour behind it.
What was broken
The pricing architecture had not been tested
Tyre pricing sat in a matrix that mixed brand, size and store without much reference to competitor position or demand. Some categories were underpriced against the market; others were priced so tightly that every discount turned them negative. Labour rates and service menus were even further behind. The business was busy but not capturing the value it had already created.
What was measured
Price elasticity, margin waterfall and customer value
The first pass built a clear view of margin by product, by store and by customer segment. That showed where volume was insensitive to price and where the business was fighting on price alone. The second pass modelled the labour and service menu against hours, parts and competitor benchmarks. The third pass looked at the enterprise agreement and modelled the cost of the existing structure against a proposed alternative.
What changed
Three pricing levers, each with a costed outcome
Tyre pricing strategy. The price architecture was reset by category and store type, with a tight guardrail on promotional discounting. The result was 8% volume growth and $2M in annualised profit.
Labour and service price review. Service menu prices and labour rates were lifted where the data supported it, with clear customer communication. The first-year revenue impact was more than $6M.
Enterprise agreement modelling. The existing enterprise agreement was modelled against several alternatives. The recommended structure delivered a $1.2M benefit.
What it produced
A pricing function that paid for itself
The combined impact was not a one-off lift. It established a pricing rhythm: elasticity testing, margin review and promotional guardrails that kept the architecture current. The team could explain why each price was set and defend it to franchisees and to head office.
The money was not won by raising every price. It was won by raising the right prices and stopping the uncontrolled discounting that destroyed the rest.
From salaried role to diagnostic
The same method, now available as an engagement
Delivered by Adam in a salaried operating role before Ajility was founded, not as an Ajility engagement. The same discipline is now packaged as the Operating Diagnostic: a structured look at where the money is being left on the table, what to do about it, and what the operating changes are worth.