Pricing is the greatest lever for corporate success. We support component manufacturers, mechanical engineers and plant constructors holistically in the development and optimization of pricing strategies and the concept design and application of intelligent methods for pricing. By defining processes, tools and organizational structures, we ensure the sustainable implementation of Pricing Excellence.
The dovetailing of corporate strategy and pricing strategy poses challenges for many capital goods manufacturers. Likewise, the required consistency with the portfolio and sales strategy is often not provided. This is particularly noticeable in the fact that there is often no clearly defined and communicated target value – also per country and product group – for sales work. The desired price positioning in the respective market segments is determined in the price strategy.
Price architecture determines how prices are formed internationally. In that context, the single elements and stages in the pricing process are defined. A global reference price is just as much an element as a regional or country-specific reference price. Whether a gross or net price approach should be pursued must be decided. In addition, the influence of the transfer price on local price formation must be clarified for transfer pricing.
High price transparency for standard products and price non-transparency for customer-specific machines and systems demonstrate the heterogeneity of potential pricing situations. It is therefore of great importance to determine the appropriate pricing method for each product. The combination of varying methods is often the path to success. With value pricing or benefit pricing, capital goods manufacturers are able to optimally benefit from the willingness to pay. Manufacturers optimize their sales and market share with market price-based or competition-oriented pricing.
The after-sales service business and, in particular, the spare parts business, are the cash cows of most capital goods manufacturers. Therefore, revenue models in service should be on the agenda of top managers. We support companies in the price management of spare parts and maintenance services such as repairs, maintenance and service contracts. Due to the high profit share and the complexity – often many thousands of material numbers have to be priced – spare part pricing is of great importance. We develop both value-based and market-price-based pricing approaches for spare parts and implement them successfully in many cases. The heterogeneity of standard and DIN parts on the one hand and complex know-how parts on the other is depicted in a differentiated manner. The ROI of a project in ET pricing is often achieved after only a few weeks with the corresponding sales volume. Our self-developed pricing software Prima® ensures a sustainable implementation.
For many manufacturers of capital goods, the gross prices, i.e. list prices, and the net prices actually charged by the customer often diverge widely. Manufacturers do not always manage to optimally consider the required principles of consistent discounts depending on customer groups, customer segments and sales channels. We will support you in the conception of performance-oriented discount and condition systems. We support optimal price execution by implementing clear space for decision-making and escalation processes as well as by training the sales organization and developing suitable instruments such as argumentation guidelines.
Professional price management is a complex task that requires sufficient capacity and dedicated competence. The functional and organizational anchoring of price management in the corporate structure is therefore a relevant success factor. The structuring of necessary pricing tasks and processes at the headquarters as well as in the national companies plays an important role. Depending on the maturity level of the organization, we develop efficient organizational structures and processes for you in order to meet the requirements of recurring pricing processes. We ensure that the necessary instruments for excellent price management, such as pricing software, are implemented.
There are only few topics that allow a direct measurement of success as pricing. Our proven pricing software solutions and pricing tools enable regular price analyses across all relevant dimensions of the business model as well as the transparent simulation of price adjustments to key performance indicators. We ensure the highest process efficiency via direct interfaces to our customers’ ERP systems. Automated test and data cleaning algorithms guarantee the high data validity and reliability of our analysis results. We ensure optimal control with relevant key figures (KPIs) and cockpits.
