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Pricing Seminar with Prof. Riekhof on 20/21.02.2025 in Hamburg
When it comes to their pricing policy, many companies still act relatively unsystematically, in fact a well-thought-out sustainable pricing strategy is often lacking. This is evidenced by our regular empirical pricing studies. The daily handling of pricing processes, not least intensified by current economic developments such as inflation, supply bottlenecks and increased procurement costs, is often perceived as very complex and often leads to a lack of consistency.
When applied correctly, the marketing tool Pricing has considerable potential for sustainable value creation. How to simplify pricing and optimally align it strategically, is conveyed by the renowned pricing expert Professor Dr. Hans-Christian Riekhof in this practice-oriented two-day intensive seminar. Practical, clear and easy to understand, he provides a solid methodological framework and thus helps companies to increase their pricing competence.
In addition to theory, practice also plays a major role in the intensive pricing seminar, with Professor Riekhof addressing specific questions from the seminar participants’ everyday work. Participants are therefore advised to bring their own company-specific topics.
The seminar on 20/21. February 2025 in Hamburg is aimed at executives and specialists in marketing and sales who are confronted with pricing questions in their daily work and who are looking for a pragmatic way to embed price decisions in a long-term pricing strategy and thus increase value creation.
Anyone who wants to participate should hurry. There are currently only a few places left.
Read the impressions of previous seminar participants here
https://www.unicconsult.com/pricing-seminar/teilnehmerstimmen/
More information at
www.unicconsult.com/pricing-seminar
Increased food prices – who actually profits from it?
Since 2020, food in Germany has become about a third more expensive. Shopping for everyday products in supermarkets has become significantly more costly. This is evidenced by an analysis of the Handelsblatt Research Institute, which evaluated the balance sheets of 70 medium-sized and large brand manufacturers as well as the leading retail corporations in Europe. It also became clear who benefits from higher prices – and who loses.
The Handelsblatt thoroughly examined the consequences of inflation on September 16, 2024. In 2023 alone, the prices for food and non-alcoholic beverages increased by 12.4 percent according to the Federal Statistical Office – significantly stronger than general inflation. The newspaper stated on the basis of its own analysis that not only the manufacturers, but also the retailers make profits. “Manufacturers and retailers have been accusing each other for years of driving up prices to increase their profits”, the newspaper writes. In fact, both benefited equally.
Increased food prices: The winners are primarily the large producers and retail chains
This applies primarily to corporations in terms of producers – globally active brand manufacturers such as Nestlé (Kitkat), Unilever (Dove) or AB Inbev (Beck’s) and Coca Cola. The large European retail chains, including Rewe and Metro from Germany, Tesco from the UK and Carrefour from France, made profits to a similar extent, according to the report.
The losers in this price increase, which set in around the start of the Corona pandemic, are the consumers who have to dig deeper into their pockets. Prof. Dr. Hans-Christian Riekhof evaluates the development from the perspective of the pricing expert: “It is remarkable that both the manufacturers and the retailers were able to use the phase of stronger inflation equally to increase their profits. This can be seen as an indication that both sides master the process of pricing quite well – but at the expense of the consumer.”
Pricing expert Riekhof: Both sides have understood the process of pricing – at the expense of consumers
In addition to consumers, however, another major loser comes into focus: medium-sized companies, producers with less than one billion euros in sales, for example Frosta and Weleda. This is also noticeable in the increasing number of insolvencies of consumer goods companies. According to the Handelsblatt report, they cannot afford to fight tough price wars with the large retail chains, especially not over a longer period of time. Many medium-sized consumer goods manufacturers would have a weaker position in negotiations with domestic trade because they often generate a large part of their revenues in Germany and are therefore more dependent on the four large supermarket chains Aldi, Lidl, Edeka and Rewe.
Increased food prices: Medium-sized companies place less emphasis on the professionalization of pricing
“The study by the Handelsblatt Research Institute makes it clear that medium-sized manufacturers lack market power on the one hand”, says Riekhof. “On the other hand, they probably also lack pricing competence. At least that’s what our own empirical studies show: medium-sized companies place less emphasis on the professionalization of pricing.”
If the market continues to consolidate, and that’s where it’s heading, corporations will become more powerful, a consumer goods manufacturer is quoted. And that’s not good news for retailers either. If the middle class bleeds out in the long run, the trade loses the versatility of its range.
Charging Station Queues for Electric Cars: Control Demand through Pricing Mechanism?
Long waiting times at charging stations for electric cars? The Handelsblatt reported on this on 02.09.2024. In the summer, many people who were on the road on Germany’s motorways experienced the annoyance of occupied fast chargers. At the same time, there is talk of overcapacity of charging stations in Germany. How does this fit together, Catania Krapp from Handelsblatt asked in her article titled “Why do electric car holidaymakers often wait for free fast chargers?”
Charging station provider Ionity: Demand lags behind
Torsten Kiedel, CFO at the fast charging station provider Ionity, contradicts in the report the accusation that the charging station utilization is too high and explains that the demand is currently rather lagging behind the expansion. Regardless of the expansion: the ratio ’15 electric cars to one charging point’ remains the same.
Charging stations for electric cars: it gets full at the beginning and end of the holidays, but also on Fridays and Sundays
For many holidaymakers, such queues would have meant hanging around in the car next to the fast chargers until someone else has finished charging, also to make sure that no other waiting driver pushes in, the newspaper writes. A charging stop of 20 minutes could thus already take twice as long. The report quotes Peter Wüstnienhaus, an expert on electromobility for many years. Especially at the beginning and end of the holidays, but also generally on Fridays and Sundays, the risk is high that the charging stations will be full, he says. He has already experienced having to wait at the A1 on Sunday evenings at 10 p.m. because all four charging points were occupied.
Pricing expert Prof. Riekhof: Control demand at charging stations through pricing mechanism
With regard to the defined goal that the number of electric cars should increase from currently 1.5 million to 15 million by 2030, the Handelsblatt asks whether the charging station infrastructure is prepared for this and how electric car drivers can avoid queues.
Prof. Dr. Hans-Christian Riekhof (UNICconsult Strategy Development) believes that the most important topic is not addressed in this exciting report, namely how demand can be controlled. His answer: through a pricing mechanism. “Do electric car drivers know the price difference between providers and the gap between fuel costs and the cost of electricity per 100 kilometers?”, asks the pricing specialist. “Do providers rely on Peek Load Pricing? Do prices change during the day, during the week or according to the seasons?” Unfortunately, you don’t find out about this. At least that’s how the oil companies do it. “It would be interesting to make a comparison here”, says Riekhof.
Photo: © Joenomias/pixabay.de
When Sales Incentives make Price Strategy Implementation impossible
Now our newsletter No. 59 can be read in english language now. What is the subject?
We focus on the wide-spread problem, that many well-conceived pricing strategies often fail, just because incentive systems in sales hinder their implementation. In our Pricing Newsletter No. 59, we explain where the greatest opportunities lie in aligning pricing strategies with incentive schemes of your sales team. You will get a close look at the the six execution levers, which we recommend Corporate leaders to use.
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Our Pricing Newsletter No. 59 is now also available in English. What is the topic?
We focus on the widespread problem that many well-thought-out pricing strategies often fail because the incentive systems in sales hinder their implementation. In our Pricing Newsletter No. 59, we explain where the greatest opportunities lie in aligning pricing strategies with the incentive systems of your sales team. You will get a detailed insight into the six implementation levers that we recommend to company leaders.
Learn more:
Pricing Newsletter No. 59 (2022): When incentive systems prevent the implementation of the pricing strategy
https://www.unicconsult.com/pricing-newsletter-no-59-2022-wenn-die-anreizsysteme-die-umsetzung-der-preisstrategie-verhindern/
Gender Pricing – When Women Pay More for the Same Products as Men
Women still pay significantly more for razors than men. This is reported by the Berliner Zeitung (BZ), citing a recent study by the Hamburg Consumer Centre. The market sample has already been taken for the fourth time – the price difference has changed little.
Of the eleven examined shaving products including shaving foam and some perfumes from drugstores, the prices for the women’s versions were on average almost 38 percent higher than for the men’s. The ingredients and compositions of the products examined were almost identical, the BZ quotes. Consumer advocates have called on cosmetics manufacturers and retailers to stop price discrimination against women.
Gender Pricing: Companies are aware of the different willingness to pay of customers
Pricing expert Prof. Dr. Hans-Christian Riekhof from UNICconsult states here that “Price discrimination means nothing other than that companies try to take into account the different willingness to pay of different target groups.” This applies to men and women alike, as well as to younger and older people, to well-off people and people with smaller wallets, to city dwellers and families in the countryside. “We will not be able to abolish this without a state uniform pricing”, says Riekhof. “But it is good that there are such price comparison studies. Whether price-conscious women now buy the male products? Let’s be surprised.”
Food Newspaper reports on PFH Pricing Study 2023
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/
Pricing Study 2023: PFH Private University of Göttingen presents new empirical investigation of pricing processes in companies
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/