Mercedes’ pricing is being centralized
A very close interlocking of sales and pricing strategy can be quite helpful if you want to increase long-term corporate profits. But how does this work in practice? Mercedes sales manager Jörg Heinermann shows us: Mercedes dealers are becoming agencies. This has consequences for the implementation of the pricing strategy:
“The most obvious benefit of the new sales concept is something else: The car manufacturer can now set uniform prices throughout the country and thus prevent discount competitions between individual car dealerships. Internally, it is referred to as a ‘small revolution’. After all, with 230,000 vehicles sold per year, Germany is the third largest sales market for Mercedes worldwide, behind China and the USA.”
– Franz Hubik in “Mercedes radically rebuilds sales – The car manufacturer degrades its German dealers to agents and standardizes IT. This brings data and saves money”, Handelsblatt, June 1, 2023, No. 104