Exploit your pricing potential in times of crisis

With the current volatile and risky environment, companies in today’s economy are facing enormous challenges ranging from extreme cost increases, disruptions in supply chains to massive hurdles/time lags in passing on price increases.

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Most companies that we have worked with are in this context not exploiting the potential of pricing to its full extent. Pricing is the biggest profit lever even before cost and volume improvements – nevertheless "value pricing" is a foreign word for many companies, although according to our experience pricing could increase sales of plus 3% – with the corresponding leveraged effect on profit. While costs and risks are calculated with the most modern tools, the possibilities and methods in pricing are often not systematically fully exploited. Most companies still set their prices exclusively according to cost-plus and competitive methods, without also using the value pricing method which is important for profit maximization.

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Our pricing methodology is based on a detailed assessment of the as-is positioning in order to plan for the future and answer the key strategic questions such as:

• Are the prices adjusted in time and amount?
• Have these adjustments been well implemented in the market?
• Were the price adjustments communicated well?
• Were synergy effects with customer processes optimally used to reduce costs?

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As a result of pricing pilots we run in selected areas with our clients, possible pricing actions will be evaluated in order to identify quick wins that can be implemented immediately. The results are concrete measures for short-term top-line improvement agreed upon and ready to implement and a first business case and quantification of top- and bottom line impact for each item.

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We help you to improve your pricing strategy in an objective and data-driven way and deliver concrete and immediately implementable measures. The objective here is to already identify and eliminate errors through our pricing assessment, so that positive effects occur immediately, increasing the profitability of our client’s company and making our clients prepared for further crisis intensifications.

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We are interested in hearing your feedback regarding your experience with pricing strategies and if they move the largest profitability levers of your business. In a short online call, we can understand your current challenges and carve out the next steps generating most value.