The Food Newspaper (LZ) picked up on the current pricing study of the PFH Private University of Göttingen in a post on June 13.

Food Newspaper reports on PFH Pricing Study 2023

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The Food Newspaper (LZ) picked up on the current pricing study of the PFH Private University of Göttingen in a post on June 13. Pricing expert Prof. Dr. Hans-Christian Riekhof and Lukas Breustedt had examined pricing processes in business practice in the spring of 2023 and interviewed companies from various industries.

The LZ headlines “Pricing is becoming more important” and explains that supply chain problems and inflation have led to pricing being more important for some companies today than it was a few years ago. Nevertheless, pricing is of very high importance for only about a quarter of the companies surveyed.

You can read the article in the Food Newspaper via the following link (paywall):
Company survey: Pricing is becoming more important

The complete Pricing Study 2023: Pricing processes in business practice:
https://www.unicconsult.com/referenz/pricing-studie-2023-pricing-prozesse-in-der-unternehmerischen-praxis/

In verschiedenen Branchen tauchen auch im B2B-Bereich innovative Pricing-Modelle auf. Heidelberger Druck etwa bietet den Kunden ein Pay Per Use Modell an. Das Unternehmen Winterhalter als Hersteller von Spülmaschinen für die Gastronomie nennt sein Pay Per Use Modell „Pay per Wash“. Das Interview mit dem CEO Ralph Winterhalter bietet spannende Einblicke in die Transformation eines Geschäftsmodells.

Pricing-Newsletter No. 72 (2023): From Pay Per Use to Pay Per Wash: an innovative pricing model for the B2B sector

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In verschiedenen Branchen tauchen auch im B2B-Bereich innovative Pricing-Modelle auf. Heidelberger Druck etwa bietet den Kunden ein Pay Per Use Modell an. Das Unternehmen Winterhalter als Hersteller von Spülmaschinen für die Gastronomie nennt sein Pay Per Use Modell „Pay per Wash“. Das Interview mit dem CEO Ralph Winterhalter bietet spannende Einblicke in die Transformation eines Geschäftsmodells.

Jetzt kostenlosen Zugang erhalten zu allen unseren Pricing Studien, zu unseren Pricing News und zu unseren mehr als 70 Pricing-Newslettern, mit denen Sie zum Pricing Experten werden können.

The PFH Private University of Göttingen has now published the Pricing Study 2023. This empirical investigation examines pricing processes of companies of various industries and sizes. The results are influenced by unusual challenges to the companies' pricing.

Pricing Study 2023: PFH Private University of Göttingen presents new empirical investigation of pricing processes in companies

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The PFH Private University of Göttingen has now published the Pricing Study 2023. This empirical investigation examines pricing processes of companies of various industries and sizes. After four pricing studies by the PFH, published in the years 2009, 2012, 2015 and 2018, the Pricing Study 2023 provides current analyses. The results are also influenced by the unusual challenges for the companies, such as the Corona pandemic and the Ukraine war with resulting supply shortages and the experience of unusually high inflation rates. With the changed framework conditions, the companies’ pricing faced completely new requirements.

The subject of the empirical investigation by Prof. Dr. Hans-Christian Riekhof and Lukas Breustädt were the formation of prices, the internal company attitudes towards pricing, the application of pricing tools, successful implementation and many other topics. “With the study, we also want to highlight potentials in the individual price design processes and show which remarkable approaches to pricing other companies can also apply”, says Prof. Dr. Hans-Christian Riekhof.

One result in advance: the results of the current investigation 2023 confirm a conclusion that was already made in the previous pricing studies: many companies still underestimate the importance of strategic pricing as the strongest profit driver.

Links

Further studies:
https://www.unicconsult.com/publikationen/forschungsberichte/

 

With her criticism of hasty interest rate hikes to combat inflation and her sympathy for strategically used, targeted price controls, she upset some media and economists. A response to an interesting contribution by Isabella M. Weber in Handelsblatt.

The Meaningfulness of Price Controls

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With her criticism of hasty interest rate hikes to combat inflation and her sympathy for strategically used, targeted price controls, she upset some media and economists. Isabella M. Weber, Assistant Professor of Economics at the University of Massachusetts Amherst, describes in a guest article in Handelsblatt on May 5, 2023, what she experienced when she expressed her opinion in the “Guardian” in 2021: strong counter-arguments even from liberal economists; students at the University of Chicago would have received an exam question about what a “real economist” would say about price controls; for her critics, the right of a company to set any price the market will bear is inviolable.

According to her, governments across Europe have already decided on certain forms of price control. In a world with overlapping emergencies – she mentions climate change, pandemic, geopolitical tensions – further shocks are to be expected, for which political decision-makers must be prepared. According to Weber, it is necessary to react before price shocks again cause major social and economic damage.

Recommendation:
You can read the interesting guest article by the economist in full on handelsblatt.de via the following link:
https://www.handelsblatt.com/meinung/gastbeitraege/gastkommentar-warum-preiskontrollen-sinnvoll-sein-koennen-/29122874.html

Pricing specialist Prof. Hans-Christian Riekhof comments: “Price controls do not really fit with a market-oriented policy. When the meaningfulness of price controls is then considered because surprisingly high profits are made in some markets, one can be very curious about the justification for price controls.”

What he believes is missing in Isabella Weber’s Handelsblatt article are terms like oligopoly, cartel office or antitrust law as well as market failure or the internalization of external effects. “Further explanations are needed here as to why ‘inappropriately’ high profits arise from the perspective of economic theory and which institutions may not have been effective here. Especially ecological issues such as the price development for fossil and non-fossil fuels require a more detailed economic analysis”, says Riekhof.

Edeka wants to remain steadfast in the fight over the pricing of international corporations. Currently, the association is no longer supplied by 17 brand manufacturers. Pricing expert Prof. Hans-Christian Riekhof has a clear recommendation for retailers.

Dispute over Pricing: Edeka and the Delivery Boycott by Brand Manufacturers

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Germany’s largest retailer Edeka wants to remain steadfast in the fight over the pricing of brand manufacturers. Currently, there are 17 corporations that do not supply Edeka, said CEO Markus Mosa. According to a current report by the news channel ntv from April 26, 2023, it is said that the “greed” of the international food corporations is not yet subsiding. Suppliers to the Edeka association, which consists of 11,000 stores, include corporations such as Procter & Gamble, Mars and Pepsi as well as parts of Henkel, Schwartau and Unilever.

The pricing of the brands is even less comprehensible than last year, as many raw materials for detergents, but also wheat, oils and fats have become cheaper again, says Mosa. The branded goods industry maximizes its results and prefers to forego delivery. The background is a dispute that has been smoldering for months between retailers and leading brand manufacturers over prices.

It’s about power issues: Who can assert themselves in the pricing strategy?

“Constructive cooperation between suppliers and trade looks different”, says pricing expert Prof. Dr. Hans-Christian Riekhof. “When a retail group reports that there is a delivery boycott by 17 well-known brand manufacturers, then this is a phenomenon that we do not encounter every day – and that consumers also register in view of the gaps on the shelf.”

Obviously, one of the parties feels disadvantaged and cannot agree with the prices or conditions offered – there is no negotiation result. Riekhof: “In negotiation management, this is called ‘BATNA’ (Best Alternative to No Agreement). It’s about power issues: who has the upper hand and can ultimately assert their ideas?”

What do the pricing strategies for own brands look like?

Retailers like Edeka have already started years ago to make themselves more independent of the brand manufacturers by building up their own brands. However, predominantly in the lower price ranges, Riekhof continues. He recommends that retailers urgently review the pricing strategy for their own brands.

“From our pricing projects for retail, we know that the price gap between the retail brand and the manufacturer brand can be significantly reduced from the customer’s perspective. Here are untapped profit potentials for retail. Good that the manufacturers force the trade to review their price architecture.”

(Read also Riekhof on Pricing on the subject of price architecture).

Links

Read full article:
https://amp.n-tv.de/wirtschaft/Edeka-meldet-Lieferboykott-von-17-Herstellern-article24079771.html

Photo:
Tara Clark/pexels.de