Pricing
The area prices, in particular for spare parts and upgrades but also machines, leads again and again to violent internal discussions of all involved. In most companies, price increases are often discussed more intensively internally than later with the customer.
Our experience of recent years has shown that the potential in this area is being successfully exploited by only a few companies. In particular, the After Sales division, with its already good margins, has the greatest leverage to positively influence the results of a company.
Over the years, costs and prices have changed in such a way that the structures that have once been used, such as regulated factors for manufacturing costs or purchase prices, are no longer recognizable today or only for newly created articles.
Regular price adjustments are often neglected or, for fear of alienating customers, not carried out. What helps many companies is the view of an independent outsider to recognize undetected potential. Our experience from different pricing projects can help you here.
The optimal price for a product is determined by e.g. influenced by the following factors:
The product
For example, what are the production costs and what is the situation compared to your comparable products from your house?
How is the quality to be judged?
The customer benefit
How does the customer rate your product, what benefits does it bring to him, how important is your quality for him (value selling)?
The market
What is your competition doing in terms of price and quality?
How many competitors are there and are there regional differences?
The company
Image, market shares.
Your company philosophy
Relation to proximity to the customer, lived service mentality, prices in general, goals of the company.
The company Performance
The ability to deliver (National and/or International) combined with accessibility and responsiveness.
