Numerous practical examples confirm that pricing – the elementary determining factor for your company’s success – is much too often not aligned with the corporate strategy and at the same time neither a full price organization nor sufficiently implemented price processes exist. To avoid such inefficiencies, we are there for you to support you in the following areas, among others: Definition of effective price strategies, international price harmonization & differentiation, implementation of discount – and requirements strategies, price-building processes and pricing for product launches, professionalization of price management, creating internal & external price acceptance as well as introducing controlling processes through pricing cockpits / KPI dashboards.
Homburg & Partner‘s Pricing Excellence approach helps you achieve the price consistency necessary in times of increasing market transparency, which will lead your company to lasting growth in the technology market. To achieve this, we identify action areas based on the following six essential dimensions:
In order to be able to implement the most successful price strategy possible, this needs to be consistent with the corporate strategy while at the same time being compatible with the requirements and consequences of the sales strategy. Our Pricing Excellence approach therefore defines target KPIs beyond markets, competitors and products, which equally take pricing and sales components into account, while also creating a framework for your price positioning without ignoring important impact factors.
Price building processes need to be defined step-by-step and continue to exist per geographical unit at least as a point of reference. This will allow you to establish a domestically and internationally transparent and clearly communicated pricing. We have best practices available in this regard for defining price structures – such as price waterfalls or geographically optimized transfer-pricing systems – thanks to many, internationally set up customer projects.
Pricing methods at the product level and the performance level need to be set and at the same time a specific mix of these methods need to be considered within the pricing framework, since often different methods within the portfolio can lead to the greatest sales in the technology market. In this context we will find the ideal pricing for you, employing methods such as value-based pricing or portfolio pricing.
Due to the great relevance for the company’s success, price management should have well-trained competences and sufficient capacities made available to it. We therefore implement an ideal price organization for you which transfers responsibilities to your main and sub-units and makes the necessary price processes operational using suitable systems. Internal and external, professionalized communication of the new price design is of particular importance to achieve the greatest possible acceptance.
Tech companies often do not possess enough experience to develop economically sensible discount and conditions systems that take their sales structures into account. This often leads to a great difference between the gross prices desired and the net prices enforced in the end. We will support you in developing a foundation for your discounts and conditions based on performance-based factors, providing a scope for decision-making and escalation processes as well as skill-building materials such as negotiation guidelines for your sales force.
Finally, we will support you in the simple monitoring of your KPIs which you seek to reach, by using defined pricing strategies within the provided pricing architecture. We make use of the direct success measurement of the pricing and adapt your prices so that they are success-oriented by employing tried and tested controlling tools.
Homburg & Partner can look back on many years of experience in employing the Pricing Excellence approach to ideally set up your company ahead of your competitors from pricing strategy to controlling, considering interfaces such as the sales area, thus increasing margin profits and efficiently exhausting markets.
Do you have questions or wish to discuss a topic? Then please contact our experts Dr. Michael Scholl and Dr. Michael Marquardt.